What’s happening with the plug-in car grant?
A reader is buying a Tesla Model 3 electric car and wants to know if it qualifies for the government's plug-in car grant...
I’m hoping you may be able to help me understand where I stand with the recent changes to the plug-in car grant.
In February I ordered a new Tesla Model 3 costing more than £50,000. My order agreement shows the UK Government Plug-in Grant of £3500 taken off the total price.
I have asked Tesla to confirm if the grant is still valid for vehicles on order and they have responded to say they are trying to clarify the situation. I’d like to know up front if the grant is not available because I’ll have to cover the additional £3500.
Can you let me know if I’ll be able to get the grant?
Phil Maltby
What Car? says…
Although the plug-in grant for electric cars was extended for another three years by the Chancellor in his March budget, the amount was reduced from £3500 to £3000, and it was revealed that cars costing more than £50,000 would no longer be eligible for it.
However, as long as the dealer submitted the application for the grant before the changes were announced on 12 March, your car should still be eligible for the £3500 discount.
Additionally, anybody getting a Tesla as a company car will benefit from the latest cuts in benefit-in-kind (BIK) company car tax. From 6 April, all fully electric cars will benefit from a 0% BIK rate, rather than the previous rate of 16%.
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Read more about the latest company car tax rules >>
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