In this blog, we’ll explore how the ULEZ charge impacts van owners, the tax considerations, and why now might be the best time to sell your non-compliant van.

What is ULEZ and why it matters for van owners

The Ultra Low Emission Zone (ULEZ) is an environmental initiative aimed at reducing pollution in London’s urban areas. The zone enforces a strict emissions standard, meaning older, more polluting vehicles must pay a daily charge to operate within it. For van owners, this means:

- If your van does not meet Euro 6 (diesel) or Euro 4 (petrol) standards, you’ll have to pay £12.50 per day to drive within the ULEZ.

The ULEZ is currently operating in London, but other cities including Birmingham and Bristol have also introduced similar clean air schemes. Non-compliance can result in significant costs for businesses relying on vans for deliveries, transportation, or trade.

In addition to ULEZ charges, van owners operating in central London may also have to pay the London Congestion Charge, which applies to most vehicles entering the Congestion Charge Zone from 07:00 to 18:00, Monday to Friday, and 12:00 to 18:00 on weekends and bank holidays.

The Congestion Charge is £15 per day on top of ULEZ charges. Vans that meet ULEZ standards may still have to pay the Congestion Charge unless they qualify for an exemption.

The financial impact on small businesses and van operators

For businesses running multiple vans, ULEZ can add up to thousands of pounds in extra costs each year. Tradespeople and contractors, such as electricians, plumbers, and builders, often work across multiple cities. As a result, the daily ULEZ charges could significantly reduce their overall profits. Businesses that make multiple trips within ULEZ zones must decide between paying the charge, upgrading their fleet, or altering delivery routes to avoid the additional costs. Self-employed van owners, who may have fewer financial resources compared to larger businesses, could struggle with the unexpected financial burden of ULEZ fees, making upgrading their vehicle a necessary but costly decision.

Many businesses are left with a tough decision to either continue paying ULEZ charges, invest in a new van, or sell their older vehicle before its value drops further.

ULEZ and tax implications for van owners

Understanding the tax implications of ULEZ charges is essential for businesses. Here are some key points:

- ULEZ charges as a business expense: If your business regularly operates in the ULEZ, the charges can be classified as an allowable business expense.

- Capital allowances for upgrading vans: Businesses investing in new ULEZ-compliant vans may benefit from capital allowances and tax reliefs under schemes like the Annual Investment Allowance (AIA).

- VAT considerations: If you’re buying a new van, you may be able to reclaim VAT (if VAT-registered), helping offset some of the costs.

The impact of ULEZ expansion on the second-hand van market

As ULEZ expands, the second-hand van market is experiencing significant changes. The demand for ULEZ-compliant vans has increased as businesses seek to upgrade to Euro 6 diesel or electric models, driving up prices.

On the other hand, the value of non-compliant vans is gradually decreasing as more cities introduce low-emission zones, leading to a decline in demand for older diesel vehicles. However, non-compliant vans may still retain resale value in rural areas where ULEZ restrictions do not apply, providing opportunities for sellers looking to offload their vehicles outside urban zones.

For businesses with older vans, selling now could maximise returns before values drop further.

Why now is the best time to sell your old van

Given the expanding ULEZ regulations and the financial impact they bring, selling a non-compliant van now is a practical decision. Instead of paying the daily ULEZ charge of £12.50 businesses can reinvest their savings into a compliant van, avoiding ongoing expenses. Additionally, the demand for ULEZ-compliant vans remains high, meaning businesses looking to upgrade may benefit from strong resale prices. However, as more cities introduce low-emission zones, the value of older, non-compliant vans is expected to decline. Selling now ensures that owners can maximise their return.

For those looking for a quick and hassle-free way to sell, UK Best Van Buyer offers a fair and competitive price for used vans. Our process allows businesses to offload non-compliant vehicles with ease, avoiding the complexities of private sales while securing a great deal.

Sell your van today with UK Best Van Buyer

At UK Best Van Buyer, we specialise in buying second-hand vans from businesses and individuals. If you own a van that isn’t ULEZ-compliant and want to sell it for the best price, we can help.

✔Instant online quotes
✔Fast payment
✔Hassle-free process 
✔We buy all makes & models

Don’t wait until ULEZ costs eat into your profits—sell your van today and invest in a cleaner, more cost-effective future.

Visit UK Best Van Buyer to get a free valuation today.