HM Treasury (HMT) is proposing a significant business rates relief scheme for electric vehicle (EV) chargepoints and EV-only forecourts, aiming to bolster the commercial viability of the UK's charging infrastructure. The Subsidy Advice Unit (SAU) recently published its report, providing advice to HMT regarding the compliance of this proposed scheme with the Subsidy Control Act 2022. This initiative seeks to accelerate the rollout of publicly accessible EV charging facilities, supporting the government's Zero Emission Vehicle mandate and broader environmental objectives.
Under the proposed scheme, eligible properties will receive a 100% relief from their business rates liability, meaning no business rates will be payable on qualifying EV charging points or EV-only forecourts. This relief is intended to be in effect until 1 April 2036 and will be backdated to 1 April 2023. HMT has estimated the value of this scheme to be approximately £200 million over its initial five years, a substantial investment aimed at transforming the EV charging landscape.
The rationale behind targeting these specific beneficiaries stems from the Valuation Office's assessment that some EV chargepoint bays have become identifiable as separate 'hereditaments' – properties that can be separately assessed for business rates. By eliminating this tax burden, the government hopes to make the installation and operation of EV charging infrastructure more attractive to businesses and investors, addressing a key barrier to wider EV adoption.
Local authorities will be responsible for administering the relief, applying it when issuing business rates bills to eligible properties. Crucially, central government will fully compensate local authorities for any loss of income resulting from this relief, ensuring that local services are not negatively impacted. The Ministry of Housing, Communities and Local Government is expected to issue guidance to local authorities, outlining the criteria for determining eligibility, primarily based on whether a property is predominantly used for EV chargepoints.
The SAU's involvement follows a request from HMT on 12 May 2026 for a report concerning this proposed 'Subsidy Scheme of Particular Interest'. The SAU's role is to evaluate HMT's assessment of whether the scheme complies with the subsidy control requirements, a process that typically involves a 30-working-day review period. The publication of the SAU's final report on 17 June 2026 marks a key step in the progression of this significant policy.