This subsidy was launched in 2011 to encourage the British to abandon polluting diesel and petrol cars.
Nearly half a million cars have been bought with the subsidy since then, the Department for Transport (DfT) said, stressing that it was “always a temporary policy”.
Sales of all-electric cars in the UK have risen from less than a thousand in 2011 to almost 100,000. in the first five months of this year alone.
The UK government hopes to ban the sale of new cars with internal combustion engines from 2030 as part of its goal of achieving CO2 neutrality by 2050.
The announcement on Tuesday was harshly criticized by governments by the UK Automobile Manufacturers and Dealers Association (SMMT).
“The decision to phase out the subsidy for grid-powered cars is sending the wrong message to buyers and the industry, which remains committed to the government’s goal of zero carbon,” said Mike Hawes, head of SMMT.