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The van grant for zero emission vans: how the discount works

Last checked 19 October 2026 Quick answer GOV.UK says some new zero emission vans can be sold at a 35% discount, up to a maximum of £2,500 for eligible small vans and £5,000 for eligible large vans. You don’t apply for the grant. The dealer includes it as a discount in the purchase price and…

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Last checked 19 October 2026

Electric vehicle plugged in at a public charging point
Photo: Faruk Yıldız on Pexels

Quick answer

GOV.UK says some new zero emission vans can be sold at a 35% discount, up to a maximum of £2,500 for eligible small vans and £5,000 for eligible large vans. You don’t apply for the grant. The dealer includes it as a discount in the purchase price and claims it through a government portal. Only vans on the government’s approved list qualify, and the list changes, so check it, and check the discount on your paperwork, before you buy.

This is general information, not legal or tax advice. Check GOV.UK or speak to a qualified adviser about your situation. Why we say this.

If you’re thinking about an electric van for your business, the price is often the first hurdle. The government’s zero emission vehicle grant is designed to bring that down for eligible vans.

This guide explains how the van grant works, using GOV.UK’s guidance as it stood when we checked it on 19 October 2026. Grant levels and the list of eligible vans can change, so check GOV.UK on the day you buy. It doesn’t cover how vans are taxed: for that, ask an accountant.

How much the discount is

GOV.UK’s page on vans eligible for a grant says some vans can be sold at a 35% discount, with the seller including the discount in the purchase price. It sets out two categories:

CategoryGross vehicle weightMaximum discount
Small vansLess than 2,500kg£2,500
Large vansBetween 2,500kg and 4,250kg£5,000

GOV.UK says there are a limited number of grants.

GOV.UK’s Vehicle weights explained guide says gross vehicle weight, also called maximum authorised mass, is the weight of the vehicle including the maximum load it can carry safely on the road. It says this is listed in the owner’s manual and is normally shown on a plate or sticker on the vehicle.

Which vans qualify

GOV.UK says that only vehicles approved by the government are eligible. For both small and large vans, it says the van must:

  • produce 0g CO2/km at the tailpipe
  • be able to travel at least 96km (60 miles) without any emissions

GOV.UK lists the eligible models by name for each category. The government’s guidance for dealers says the list is updated as new vehicles come to market and older vehicles are withdrawn from sale. So a van that’s on the list today may not be next month, and a new model may be added. Check the list for the exact model and version you’re looking at.

How you get the discount

You don’t fill in a form. GOV.UK’s Zero emission vehicles eligible for a grant page says you do not apply for the grant: the seller includes it as a discount in the purchase price.

Behind the scenes, the dealer submits the details through the zero emission vehicle grant portal. GOV.UK says customers buying a vehicle don’t need access to the portal, and grants are passed on by dealers at the point of purchase. The portal is run by the Driver and Vehicle Licensing Agency (DVLA) for the Office for Zero Emission Vehicles (OZEV), which works across government to support the move to zero emission vehicles.

The rules that affect you as a buyer

The government’s guidance on using the grant portal is written for dealers, but a few points matter to buyers.

  • Who can get it. It says the scheme is available to all private individuals and businesses buying or leasing a vehicle at the point of purchase directly from the dealership or manufacturer.
  • The price it comes off. For private and business sales, it says the purchase price means the actual price paid, including any discount. That includes number plates, vehicle excise duty and VAT where they apply, but not optional extras, delivery charges or the first registration fee. Any dealer or manufacturer discount must be applied before the grant.
  • When the level is fixed. It says an order placed on the portal for a specific customer is guaranteed the grant at the level advertised when the order was placed, provided the vehicle is registered and delivered within 12 months. It describes the 12 months as a temporary extension that OZEV can change.
  • No guarantee until validated. It says a grant is not guaranteed until the vehicle has been validated through the portal, and that dealers should submit orders as close to the point of sale as possible.
  • Annual limits. It says each business, organisation or individual can receive up to 1,500 zero emission van grants each financial year (1 April to 31 March). That’s unlikely to affect a sole trader, but it shows the grant is counted per customer.

What to check before you sign

  • Is the exact model and version on GOV.UK’s list of eligible vans?
  • Is the grant shown clearly as a discount on the order and invoice?
  • Has the dealer placed the order on the grant portal, and when?
  • What’s the expected delivery date, and does it fit within the period the dealer has told you about?
  • Are any extras you’re buying priced separately from the van?

Keep your order, invoice and finance or lease paperwork together with your business records. GOV.UK says you must keep records for at least 5 years after the 31 January submission deadline for the tax year.

Other things to weigh up

A grant is one part of the cost of running a van. Charging at home or at work, range for your typical day, payload and running costs all matter too. If you’ll drive into city centres, our guide to Clean Air Zones and ULEZ for vans explains what to check. For the wider list of start-up costs, see our checklist for starting a business.

Frequently asked questions

Do I apply for the van grant myself?

No. GOV.UK says you do not apply. The seller includes it as a discount in the purchase price.

Can I get the grant on a used van?

GOV.UK’s grant pages describe the grant as applying to some new zero emission vehicles. Check with the dealer and GOV.UK for the van you’re looking at.

Does the grant apply if I lease the van?

The government’s portal guidance says the scheme is available to individuals and businesses buying or leasing a vehicle at the point of purchase from the dealership or manufacturer. Ask the lease company how the grant is reflected in your payments.

How do I know if a van is eligible?

Check GOV.UK’s list of eligible vans for the exact model. If a model isn’t listed, the guidance tells dealers to query it with the manufacturer.

Sources

All checked on 19 October 2026.

Where to check

What changed. : . 28 October 2026: First published.