Shire Leasing has worked closely with Bath and North East Somerset Council, to develop this pioneering financing initiative to provide direct support to local businesses to upgrade eligible vehicles. This includes pre-Euro 6 Diesel and Pre-Euro 4 Petrol LGV’s, HGV’s, Buses/Coaches and Taxis that are regularly entering the centre of Bath and have been identified as having a particularly negative impact on air quality through their emissions. Businesses can benefit from a Grant towards the acquisition of a compliant vehicle and/or Interest Free financing so that they can spread the cost of acquiring the vehicles with no interest or fees.
How to get started?
If you are interested in participating in the scheme, in the first instance you should register your interest and discuss your circumstances with the Bath Clean Air Zone Team. You can learn how to do this by reading our Frequently Asked Questions (FAQ’s).
Completed Bath basic eligibility assessment?
If you have already received your Basic Eligibility Letter from Bath and wish to apply for financial assistance, you can find out more about the business finance options we can offer and make an application further down this page.
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Clean Air Zone financial assistance from a reliable funder
As experts in the UK SME marketplace, we have established ourselves as an experienced and reliable funder for vehicles, assets and almost anything else business related. Whether it’s a one-off car purchase, or a brand new commercial vehicle fleet, with over 30 years of business funding experience, Shire Leasing has the knowledge and expertise to help eligible businesses to invest in CAZ compliant vehicles.
In addition to administering your grant, we can offer businesses interest free finance lease and hire purchase solutions. Our finance options can help businesses to improve cash flow, by spreading the cost of acquiring vehicles.
Compare options to suit your business
Grant
Grant
You could receive a grant of up to 35% of the net upgrade cost of your new vehicle, significantly reducing the final cost of an upgrade. Grants are capped for each vehicle type, as shown below.
The benefits:
Taxis, PHVs and vans: up to £4,500
HGVs: up to £20,000
Buses and coaches: up to £35,000
These grants can be used alongside the scheme’s interest free finance, which we can offer through a Finance Lease or Hire Purchase.
Finance Lease
Finance Lease
Shire Leasing buys your chosen vehicle on your behalf, leasing it back to you in exchange for agreed interest free repayments over an agreed term. Your business will have use of the vehicle without any high upfront costs or mileage restrictions and rentals can be up to 100% tax deductible. At the end of the agreement, with our permission, the vehicle can be sold by you to a third party and you will receive 95% percentage of the sale proceeds. The VAT on both the grant and the interest paid by the Council will be payable together with your first regular rental repayment, but can be reclaimed in the normal course of business.
The benefits:
No major upfront costs – for just a small outlay you can use the vehicle immediately
Flexible repayment structure – rental payments can be tailored to match your cash flow
Tax advantages – finance lease rentals can be up to 100% tax deductible
No mileage restrictions – drive the vehicle without the worry of additional charges for exceeding mileage restrictions
Hire Purchase
Hire Purchase
A simple and straightforward way to pay for your vehicle. We hire the vehicle to you for an agreed period of time at an agreed interest free repayment. You can gain ownership (title) by paying an ‘Option to Purchase fee’ of £150+VAT, provided that you have paid off all other sums due under the agreement. VAT on the balance financed is due along with your first rental but can be reclaimed in the normal course of business.
The benefits:
Ownership – the asset can be yours at the end of the agreement through a final nominal transfer of ownership fee provided all repayments are made
No major upfront costs – for just a small outlay you can use the vehicle immediately
Flexible repayment structure – rental payments can be tailored to match your cash flow
Tax advantages – the vehicle can be retained as a company asset on your balance sheet allowing some businesses to claim full capital allowances
No mileage restrictions – drive the vehicle without the worry of additional charges for exceeding mileage restrictions
Complete your application
Please ensure you have all relevant information ready, including information about your business (and proprietor/partners personal details if applicable), bank account details, existing vehicle details and, if you have them, the replacement vehicle details (you can still continue with an application if you haven’t sourced your vehicle yet).
If your business meets Bath’s eligibility criteria, has been issued a Basic Eligibility Letter and you have decided which finance option is best for your requirements, you can continue with your application.
Please be aware that our working hours are Monday to Thursday 09:00 to 17:30 and Friday 09:00 to 17:00. Applications will only be processed within these hours.
Answers to your frequently asked questions
Scheme
How do I register my interest for the financial assistance scheme?
If you are interested in participating in the scheme you should contact Bath in the first instance to discuss your circumstances. Bath will provide you with a telematics device that will record your vehicle’s movements for two months. The device should be left in the vehicle full-time until you are asked to return it. Bath will provide you with a Basic Eligibility Letter which you can pass on to the finance provider as evidence of your eligibility.
To start this process you should visit the Bath website to find out more, contact the Bath team by email on CAZ_info@bathnes.gov.uk or call them on 01225 396189 within normal working hours.
Am I eligible for the financial assistance scheme?
You may be eligible for the scheme if you;
- Have chargeable, non-compliant vehicles that travel frequently into or around the zone, or if you operate from a premises within the zone.
- Have been living at your current address, or trading from it, since 1st May 2020.
- Have owned the vehicle you want to replace, since 1st May 2020.
- The existing non-compliant vehicle must be roadworthy and have a valid MOT certificate
- The existing vehicle must not be nationally or permanently exempt from charges.
All applications are subject to status, eligibility and credit checks.
Which businesses can you support?
We are able to support the following businesses which include;
- Limited Companies
- PLC’s
- Registered Charities
- Sole Traders
- Partnerships with more than three partners
- Sole Trader and partnerships with less than 3 partners where;
Hire Purchase – the balance being financed over the period of the agreement after applying the part exchange value, the Grant (if any) and any additional deposit paid by you against the Vehicle Price, is > £25,000.
Finance Lease – the total of all repayments over the period of your lease including VAT is > £25,000. The repayments will be the repayments payable by you and shown on your finance documentation. These are based on the balance financed after applying the part exchange, the Grant (if any) and any additional deposit paid by you against the Vehicle Price has been deducted.
Our team will be happy to discuss these options with you.
How much will I pay when the CAZ goes live in Bath?
The charge will be dependent on the type of vehicle you drive. Your vehicle type is listed on your V5C document, insurance and vehicle tax.
The following shows the daily charge by Bath and North East Somerset Council for entering in the Bath clean air zone when it goes live in March 2021;
What should I do if I pass the eligibility test but you decline me for credit?
If you pass the eligibility assessment but fail our financial checks, we will let you know the reason why Shire are unable to proceed with your application. You can then apply to the other funders on the approved panel who may be able to support you. The funder’s details will be available on www.bathnes.gov.uk/cleanairzone.
If you fail the credit checks of all three funders you should contact Bath to discuss your situation. It may be possible for them to exempt any Euro 4 or Euro 5 diesel vehicles for two years from the zone’s launch. There will be no temporary exemption for pre-euro-4 vehicles.
You can contact Bath by email on CAZ_info@bathnes.gov.uk or on 01225 396189 within normal working hours.
Do I have to pay the CAZ charges whilst I wait for delivery of my new vehicle?
If your application is accepted, you’ll be able to apply to Bath and North East Somerset Council for a temporary exemption for existing Euro 4 and 5 diesel vehicles until the expected handover date, or from two years of the zone’s launch (whichever is sooner).
Finance
What financial support is available under the financial assistance scheme?
The financial support scheme provides grants and interest-free finance to help those businesses who may regularly have to pay charges for journeys into Bath’s new Clean Air Zone.
Subject to status, eligibility and credit checks, we are able to offer you the following options;
1. Grant only and acquiring your new vehicle with cash/your own financing;
2. Grant and an interest-free finance agreement or;
3. Interest-free finance agreements
What financial products do you offer?
Our financial products, available over terms of 2 – 5 years (6 and 7 years for coaches and buses) are;
Hire Purchase – this allows you to spread the cost of the vehicle with the option to own it at the end of the fixed period for a one off Purchase Option Fee of £150+VAT or,
Finance Lease – if you are looking for a tax-efficient solution, this product allows you to offset monthly/quarterly payments against taxable profits but where you can receive 95% of the proceeds of sale at the end of lease term.
You can find out more about financial options here.
How does the interest-free financing work?
Subject to eligibility and credit checks you will be able to spread the cost of acquiring your eligible replacement vehicle over a period of up to 5 years (6 and 7 years available for Buses and Coaches).
Here is an example of a typical Hire Purchase agreement to show you how this might work;
In this example your rentals are payable monthly over 3 years with the interest being funded by Bath i.e. £15,500 divided by 36 months = £430.55 per month.
Do you offer a Contract Hire option?
We do not offer a contract hire agreement but if this is something that you are interested in, this option may be available from the other panel of funders whose details are on the Bath Clean Air Zone website.
What lease repayment periods are available?
The maximum repayment period for the interest-free finance will be 5 years, which may be extended to 6 or 7 years for some specialist vehicles, including buses and coaches.
Sometimes the repayment period may be restricted when we confirm approval of your credit/eligibility checks but this will be communicated to you with the decision on your application.
What is the value of the grants available?
You could receive a grant of up to 35% of the net upgrade costs, significantly reducing the final cost of an upgrade. These grants can be used alongside the scheme’s interest free finance. Grants are capped for each vehicle type, as shown below.
- Taxis, PHVs and vans: up to £4,500
- HGVs: up to £20,000
- Buses and coaches: up to £35,000
How are rental repayments made on the finance agreement?
All rental repayments are payable by direct debit mandate which will be part of the documentation that you are provided with to sign if your application is approved and you decide to proceed.
Existing vehicle (s)
Where can I check if my vehicle is non-compliant?
The GOV.UK vehicle checker service will tell you whether you will have to pay a daily charge to drive your vehicle in any clean air zone in England.
You can access this on www.gov.uk/check-clean-air-zone-charge. You will need your vehicle registration number.
You might need to pay, if your vehicle does not meet emissions standards.
Can I use the scheme to add new vehicles to my existing fleet?
No. The scheme cannot be used for adding vehicles to your fleet only for the replacement of eligible non-compliant vehicles.
Can I use the scheme to retrofit an existing vehicle?
In exceptional circumstances, we may be able to provide finance to retrofit or re-power existing non-compliant vehicles, or to replace a non-compliant vehicle with a different type or size of vehicle. Bath will only consider this where there is an additional air quality benefit, or to protect vital services to customers (for example, to exchange a coach with a bus, to comply with Disability Discrimination Act requirements.)
To discuss this further you should contact the Bath team by email on CAZ_info@bathnes.gov.uk or on 01225 396189 within normal working hours.
Replacement vehicle (s)
Which vehicles are compliant?
Vehicles that are electric, low emission or conform to more recent Euro standards should emit less pollution than older vehicles, and can therefore travel without charge in Bath Clean Air Zone. The following classes of vehicles are all compliant:
- Euro 6/VI diesel vehicles (or newer)
- Euro 4/IV petrol vehicles (or newer)
- Fully electric vehicles and hydrogen fuel cell vehicles
- All hybrid vehicles
- Modified or retrofitted vehicles registered with the Energy Saving Trust’s Clean Vehicle Retrofit Accreditation Scheme (CVRAS)
Which vehicles are non-compliant?
Vehicles that fail to meet Bath’s emission standards we call ‘non-compliant’. These vehicles, including non-UK vehicles, will be charged if driving in Bath’s Clean Air Zone, unless the vehicle is a private car or motorbike which are not charged in a class C clean air zone.
The following classes of vehicles are non-compliant:
- Pre Euro 6/VI diesel vehicles (this means Euro 1 to 5/IV or earlier)
- Pre Euro 4/IV petrol vehicles (this means Euro 1 to 3 or earlier)
Are there any restrictions on the choice of dealer supplying the new vehicle?
The vehicle must be sourced from a dealer registered with the Retail Motor Industry Federation or other reputable trade association, or in the case of a retrofit, from a Clean Vehicle Retrofit Accreditation Scheme certified manufacturer or dealer.
How do I know if my vehicle is non-compliant?
Most private cars and motorbikes (excluding taxis and private hire vehicles) are not charged for driving in Bath’s Clean Air Zone, regardless of their emissions (even if they’re used for work).
All other vehicles will need to pay a charge unless they meet Bath’s Clean Air Zone emission standards.
Compliant vehicles (no charge)
Vehicles that are electric, low emission or conform to more recent Euro standards should emit less pollution than older vehicles, and can therefore travel without charge in Bath Clean Air Zone. The following classes of vehicles are all compliant:
Euro 6/VI diesel vehicles (or newer)
Euro 4/IV petrol vehicles (or newer)
Fully electric vehicles and hydrogen fuel cell vehicles
All hybrid vehicles
Modified or retrofitted vehicles registered with the Energy Saving Trust’s Clean Vehicle Retrofit Accreditation Scheme (CVRAS)
Non-compliant vehicles (charges apply)
We call vehicles that fail to meet Bath’s emission standards ‘non-compliant’. These vehicles, including non-UK vehicles, will be charged if driving in Bath’s Clean Air Zone, unless the vehicle is a private car or motorbike which are not charged in a class C clean air zone.
The following classes of vehicles are non-compliant:
Pre Euro 6/VI diesel vehicles (this means Euro 1 to 5/IV or earlier)
Pre Euro 4/IV petrol vehicles (this means Euro 1 to 3 or earlier)
What do I do if I haven’t yet sourced my new vehicle?
Provided that you have your Basic Eligibility Letter from Bath confirming your initial mileage eligibility, we can complete eligibility and credit checks that will be conditional on you sourcing your vehicle. Once you have decided on the vehicle and dealership you should provide us with the information so that we can complete our final checks and provide approval for you to proceed.
What are the rules for the new vehicle selection?
If you are eligible and pass the credit checks, you can use the funds to reduce the cost of any of the following:
- Replacing existing non-compliant vehicles with new or second-hand vehicles which meet Bath’s emissions standards
- Retrofitting or re-powering existing or replacement non-compliant vehicles so that they meet Bath’s emissions standards.
Any replacement vehicles must be a similar make or model to your existing vehicle, but must be compliant with Bath’s emissions standards.
Post-application
What happens at the end of the finance agreement?
We have two financial products available to you and the end of term treatment will be different for each. Providing that all rentals due on the agreement have been paid, your options will be;
Hire Purchase – meaning that you can spread the cost of the vehicle with the option to own it at the end of the fixed period for a one off Purchase Option Fee of £150+VAT (providing all payments have been made) or,
Finance Lease – if you are looking for a tax-efficient solution, allowing you to offset monthly payments against taxable profits (where eligible). Your end of term options will be;
- Continue to hire the agreement for an annual peppercorn rental
- Sell the vehicle on our behalf and retain 95% of the sale proceeds
Will I need to repay the Grant and/or interest on my financing agreement?
Provided that you do not breach the terms of the Grant and/or interest-free financing agreement you will not be required to repay the financial support provided by Bath.
If you do breach the terms of the Grant and/or interest-free financing award, you may be liable to repay the Grant and the interest free amount provided by Bath in full (terms apply).
Useful links and contacts
Is there any way that I can find out more?
- To check if your vehicle will be charged in Bath’s CAZ and other clean air zones in England, go to gov.uk/check-clean-air-zone-charge. You will need your vehicle’s registration number.
- For questions about the vehicle checker’s result, your vehicle’s euro standard or compliance, contact the Central CAZ Support Service using the web form at gov.uk/cleanairzone or call 0300 029 8888.
- To find out more and register for local exemptions and discounts in Bath’s CAZ go to bathnes.gov.uk/BathCAZ
- To find out more the financial support for local businesses and individuals to upgrade non-compliant vehicles, go to bathnes.gov.uk/BathCAZ
- To speak to a B&NES travel advisor about the support available and/or exemptions, email CAZ_info@bathnes.gov.uk or call 01225 396189
Talk to one of our team
If you haven’t been able to find the answer to your question or need further support for your application, our award-winning team at Shire Leasing would be more than happy to help.
Simply complete our enquiry form and a member of our team will be in contact with you as soon as they can.
Please be aware that our working hours are Monday to Thursday 09:00 to 17:30 and Friday 09:00 to 17:00. Enquiries will only be processed within these hours.
