Electric Vehicles: VAT

(asked on 13th January 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans the Government has to increase the uptake of electric cars by removing VAT on the purchase of zero emission vehicles.


Answered by
Simon Clarke Portrait
Simon Clarke
This question was answered on 16th January 2020

The Government has set an ambitious, legally binding target to reach net-zero greenhouse gas emissions from the UK by 2050.

Although there are no plans at present to reduce the VAT charge on electric vehicles, the Government keeps all taxes under review and assesses them against a range of fiscal and environmental considerations. The Government already makes available an incentive for the public to purchase electric vehicles over conventional vehicles: the Plug-in Car Grant (PiCG) provides grants of up to £3,500 for the purchase of a new battery electric vehicle. PiCG was launched in 2011 and has supported the purchase of around 170,000 Ultra Low Emission Vehicles.

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