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Mayor of London Launches Heavy Vehicle Scrappage Scheme

30 September

Mayor of London, Sadiq Khan, has launched a new scrappage scheme aimed at heavy vehicles in advance of the tighter Low Emission Zone (LEZ) standards, which come into force on 1 March 2021.

The scheme offers small businesses with up to 50 employees and registered charities grants of £15,000 to scrap a heavy vehicle and replace it with a compliant vehicle, or to retrofit vehicles up to the cleanest Euro VI standards.  There will be a limit of three grants available for each organisation that applies.

The announcement by the Mayor of London confirms that the scheme will operate on a first-come, first-served basis and that more than 100 organisations have already pre-registered interest in the scheme.  Those small businesses and charities that have not yet registered are therefore encouraged to do so early, as funding is limited.

Read the Mayor of London’s announcement here.

Organisation Eligibility

The scheme is open to small businesses with up to 50 employees and registered charities. The following organisations can apply:

Micro businesses who must have:

  • 10 or fewer employees
  • Up to £632k turnover OR up to £316k balance sheet total in the preceding and current financial year AND
  • Companies House registration as an active company in the UK OR be VAT registered in the UK

Small businesses who must have:

  • 50 or fewer employees
  • An annual turnover of not more than £10.2 million OR a balance sheet total of not more than £5.1 million AND
  • Companies House registration as an active company in the UK OR be VAT registered in the UK

Sole traders who must be:

  • A self-employed person who owns and operates a business in the UK as an individual

Charities who must be an:

  • Entity registered with the Charities Commission as an active charity

Vehicle Eligibility

Vehicles you intend to scrap must be:

  • An HGV, large van, specialist vehicle (over 3.5 Tonnes GVW), bus or coach (over 5 Tonnes GVW).
  • Owned by an eligible organisation for more than calendar 12 months before the start of the heavy vehicle scrappage scheme on 28 September 2020
  • Insured for business use
  • Road taxed with a valid MOT
  • Surrendered for secure scrapping at either Perivale or Charlton Metropolitan Police Pounds

Vehicles you intend to retrofit must be:

  • An HGV, large van, specialist vehicle, bus or coach owned by an eligible organisation for more than calendar 12 months before the start of the heavy vehicle scrappage scheme on 28 September 2020
  • Insured for business use
  • On the Clean Vehicle Retrofit Accreditation Scheme (CVRAS) register
  • Retrofitted by a CVRAS approved company

The vehicle that you want to scrap must also fail to meet the ULEZ emissions standards.

Grant Payments

To qualify for the £15,000 grant to scrap and replace a ULEZ Non-Compliant HGV, heavy van, specialist vehicle, bus or coach:

  • The vehicle being scrapped must be:
    • a HGV, large van or specialist vehicle over 3.5 Tonnes Gross Vehicle Weight or a bus or coach over 5 Tonnes GVW that doesn’t meet the ULEZ standards (this includes pre Euro VI diesel vehicles)
  • The replacement vehicle must be:
    • a HGV, large van or specialist vehicle over 3.5 Tonnes Gross Vehicle Weight or a bus or coach over 5 Tonnes GVW that  meets the ULEZ standards (Euro VI diesel vehicles)
    • Purchased or on a hire/ lease contract that is at least two years long.
  • To be eligible an organisation must fulfil one of the following criteria***:
    • Registered within the Greater London Area
    • Hold a valid Operator’s Licence with an operating centre within the Greater London area
    • Hold a London Service Permit

To qualify for the £15,000 grant to retrofit a ULEZ Non-Compliant HGV, heavy van, specialist vehicle, bus or coach:

  • The vehicle being retrofitted must be:
    • An eligible HGV, heavy van or specialist vehicle over 3.5 Tonnes Gross Vehicle Weight or a bus or coach over 5 Tonnes GVW that doesn’t meet the ULEZ standards (this includes pre Euro VI diesel vehicles)
    • Listed on the Clean Vehicle Retrofit Accreditation Scheme (CVRAS) register and retrofitted by one of their approved companies. The register can be downloaded from the CVRAS website.
  • To be eligible an organisation must fulfil one of the following criteria***:
    • Registered within the Greater London Area
    • Hold a valid Operator’s Licence with an operating centre within the Greater London area
    • Hold a London Service Permit

***If you don’t fulfil one of these criteria you can still apply if the vehicle you want to scrap or retrofit has been driven within the Greater London Area at least 26 times between 28 March 2020 and 28 September 2020.  You will need to submit evidence of these journeys such as delivery sheets or vehicle tracker data.

Scrap or retrofit a heavy vehicle here or contact our Regulatory team on 01254 828300 or regulatory@backhouses.co.uk

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