Information
Major Motoring Changes Coming to the UK from 2026 Onwards.
The UK automotive industry is evolving rapidly, and several new laws and regulations will impact drivers, businesses, and car buyers over the next few years. From tax changes to road safety measures and even self-driving cars, here’s everything you need to know:
Fuel Duty Freeze Ends in September 2026
Fuel duty has been frozen since 2011, but this will change from September 2026. The current 5p cut will be removed, and fuel duty will rise annually in line with inflation. The current rate is 52.95p per litre for petrol and diesel.
Benefit in Kind (BiK) Tax Increase
Company car tax (BiK) will rise again in April 2026. Electric vehicles will go from 3% to 4%, and higher-emission cars could face rates up to 37%. This affects anyone using salary sacrifice or company car schemes.
Luxury Car Tax Threshold for EVs Raised
From April 2026, the Expensive Car Supplement threshold for electric cars will increase from £40,000 to £50,000. This means fewer EV buyers will pay the luxury car tax. The threshold for petrol and diesel cars remains unchanged
Motability Scheme Changes
Luxury brands like BMW, Audi, and Mercedes are no longer available on the Motability scheme. From July 2026, vehicles requiring Advance Payments will attract 20% VAT, and insurance tax will be set at 12%. Wheelchair Accessible Vehicles remain exempt.
Congestion Charge Increase & EV Discount Ends
Congestion charges will rise to £18/day (or £21 if paid late). The full EV discount ends in December 2025, replaced by smaller discounts: 25% for electric cars and 50% for electric vans/HGVs.
Euro 7 Emission Standards
All new cars and vans must meet Euro 7 standards from November 2026 to reduce pollution and improve air quality
(£195/year).
New Road Safety Strategy
Expected changes include:
- Mandatory eye tests for drivers over 70 during licence renewal.
- Lower drink-drive limit, reducing from 80mg to 50mg per 100ml of blood (similar to Scotland).
- Stricter seatbelt laws, adding three penalty points for not wearing a seatbelt (currently only a fine).
These measures aim to improve safety and reduce accidents.
Self-Driving Cars by 2026
The Automated Vehicles (AV) Act passed in 2024 paves the way for self-driving cars. These vehicles must meet strict safety standards and match human driving competence before hitting UK roads. The government hopes this will reduce collisions, create jobs, and improve transport efficiency.
Big changes are coming for UK drivers, new taxes, stricter safety rules, and even self-driving cars. Whether you own an EV, drive for work, or are learning to drive, staying informed will help you plan ahead and avoid surprises.
