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Electric Car Grant Extension and What It Means for You

The 2025 Budget brought welcome news for drivers considering the switch to electric. The government has announced an extension to the electric vehicle grant scheme alongside beneficial changes to vehicle taxation, providing further support for those making the move to zero-emission motoring.

The 2025 Budget brought welcome news for drivers considering the switch to electric. The government has announced an extension to the electric vehicle grant scheme alongside beneficial changes to vehicle taxation, providing further support for those making the move to zero-emission motoring. At Richmond Motor Group, we're here to help you understand exactly how these changes could benefit you.

What's Changed in the 2025 Budget?

The electric car grant scheme has been extended beyond its original deadline, ensuring that more drivers can access financial support when purchasing an eligible electric vehicle. This extension demonstrates the government's continued commitment to accelerating the transition to electric mobility and achieving net-zero targets.

Crucially, the 2025 Budget also introduced changes to the Expensive Vehicle Supplement threshold for electric vehicles, raising it from £40,000 to £50,000. This is particularly significant, as many premium EVs now fall outside the additional tax charge, making them more attractive than ever.

Who Can Benefit from the Electric Car Grant Extension?

The extended grant applies to qualifying electric vehicles that meet specific criteria regarding price (lower than £37,000), emissions and range. Our knowledgeable team at Richmond Motor Group can quickly identify which models in our showroom are eligible, ensuring you maximise any available savings.

Additionally, grants remain available for electric vehicle charging point installations, making it even more convenient and cost-effective to charge at home.

Understanding the Electric Car Tax Benefits

The 2025 Budget changes create a more favourable environment for electric vehicle ownership. Zero-emission vehicles continue to benefit from significantly lower VED rates in the first year and standard rate thereafter, whilst the raised supplement threshold means more models avoid the additional charge entirely.

In addition, an electric vehicle with a list price of £45,000 would previously have attracted the Expensive Vehicle Supplement. Under new rules, it's now exempt – saving you over £2,200 in additional tax over five years.


Why Choose Electric Now?

Beyond grant support and improved tax treatment, electric vehicle drivers enjoy numerous advantages:

  • Under certain circumstances, significantly lower running costs compared to petrol or diesel (home-charging is key here)
  • Reduced Benefit in Kind tax for company car drivers – rates extended to 2030
  • Exemption from certain congestion charges
  • Access to the latest automotive technology and safety features
  • Lower maintenance requirements with fewer moving parts

How Richmond Motor Group Can Help

Navigating the various grants, incentives and tax benefits introduced in the 2025 Budget can be complex. Our experienced team takes the hassle out of going electric by providing clear, straightforward advice tailored to your circumstances.

We'll help you understand your total cost of ownership, identify eligible vehicles, explain how the new £50,000 threshold affects your choice, and arrange test drives so you can experience the future of motoring first-hand. With flexible finance options and part-exchange valuations, we make the switch to electric simple and affordable.

Visit Richmond Motor Group today to explore our range of electric vehicles and discover how the 2025 Budget changes can help you save. Contact us at www.richmondmotorgroup.com or call to speak with our EV specialists.


23 March 2026

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