UK driving law & vehicle excise duty changes 2026 explained

With big changes ahead for UK driving laws and taxes in 2026, it’s important for every driver to stay informed. The government is introducing new rules that will impact many areas of driving.

Understanding these changes now will help you avoid penalties, manage costs and plan for the year ahead with confidence. This expert guide is here to keep you ahead of the game.

Driving test bookings

From spring 2026, new rules will be introduced to help reduce driving test backlogs and ensure a fairer process for everyone. These include:

• Learner drivers only – Only learners can now book and manage their driving test –driving instructors or third parties won’t be able to do it for you.
• Limited changes – You will be able to change your test booking up to two times. After that, any changes will require a full cancellation and rebooking.
• Test centre location – If you need to change your test centre location, it must be close to the original one. This is to discourage bulk bookings in less busy areas with the intention of swapping.

These changes are designed to reduce booking delays and make the scheduling process clearer for learners.

Seatbelt rules

As part of the ongoing effort to improve road safety, new laws around seatbelt usage are being introduced in 2026.

These include:

• Increased penalties: Drivers caught without a seatbelt (or those responsible for passengers not wearing one) will now face three penalty points on their licence instead of just one.
• Fines: This is in addition to the standard fine for not wearing a seatbelt, which can vary depending on the enforcing authority and court decision.
• Driver responsibility: If any passenger isn’t wearing a seatbelt, the driver will be fully responsible for the violation.

With these new rules in place, it’s more important than ever to make sure everyone in your vehicle is properly secured before you set off. A little extra care can help you avoid penalties and, more importantly, keep everyone safe on the road.

The London congestion charge

London’s congestion charge increased to £18 per day as of January 2026. The charge goes up to £21 if you pay it within 3 days of travel. Discounts for electric vehicles are applicable, with 25% off for cars and a 50% reduction for electric vans and HGVs.

To avoid any unexpected costs, it’s a good idea to plan ahead when driving in the capital.

Emission standards

From November 2026, all new cars and vans will need to meet the Euro 7 emissions standard. This new standard is stricter than the one before, covering not just internal combustion engines, but also hybrids.

The goal is to reduce harmful pollutants like nitrogen oxides (NOx) from petrol and diesel engines, and particulate matter from engines, tyres and brakes.

To help keep emissions in check, car manufacturers will need to install advanced onboard monitoring systems that make sure vehicles stay within legal limits throughout their lifetime.

Fuel duty

Starting in September 2026, the government will end the 5p-per-litre fuel duty discount that was introduced in response to the cost-of-living crisis. This means that petrol and diesel drivers can expect higher prices at the pump.

Company car tax

Company car tax will also see an increase in 2026. For those with electric company cars, the benefit-in-kind (BiK) rate will rise from 3% to 4%. If you’re driving a higher-emission vehicle, the rate could go as high as 37%.

If you drive a company car, it’s a good idea to take a closer look at how these changes could affect your tax bill.

Luxury EV tax 

The threshold for the expensive car supplement is rising from £40,000 to £50,000. This change starts from 1st of April 2026 but applies to all electric vehicles registered from 1st of April 2025.

So, if your EV was first registered after the 1st of April, and it falls under the £50,000 limit, you won’t need to pay this annual £425 ‘luxury car tax’.

Vehicle Excise Duty

Starting April 2026, there’ll be some significant changes to Vehicle Excise Duty (VED), unofficially known as road tax.

What are the new Vehicle Excise Duty rates?

Two key changes will affect car owners in 2026:

• First-year VED: Road tax for vehicles in their first year on the road is increasing from £5,490 to £5,690 for 59 models, including popular brands like Audi, Ford and BMW. This is the highest rate, only payable for vehicles that produce the highest levels of CO² emissions, more than 225 grams per kilometre.
• Annual standard rate: The standard rate for subsequent years will also rise slightly from £195 to £200, in line with inflation.

How much is Vehicle Excise Duty

The cost of VED varies on your vehicle emissions, with first-year rates ranging from £10 to the new upper limit of £5,690.

The lowest first-year rate applies to cars with zero emissions, while the highest rate is for cars emitting more than 255 grams per kilometre (g/km) of CO²

You can expect to pay:

• £560 in road tax for the average petrol car, which emits around 143g/km.
• £1,360 for the average diesel car, which emits around 164g/km.

Once a car is past its first year on the road, the VED rate drops to the new standard £200 annually.

What does Vehicle Excise Duty pay for?

Vehicle Excise Duty (VED) is a fee you pay to legally use and park your vehicle on public roads. If your vehicle is off the road and not in use, you need a Statutory Off Road Notification (SORN) to avoid paying VED.

Prepare for the future with A Choice

With so many driving law and vehicle tax changes coming in 2026, its important to stay on top of the latest updates and make sure you’re prepared.

When it comes to car insurance, A Choice is here to ensure you have one less thing you need to worry about. We compare policies from a panel of insurance providers on your behalf, saving you time and ensuring you get cover suited to your needs. Feel free to get in touch today for a tailored quote and let us do the hard work for you.

Looking to learn more about motor-related topics? Explore our expert guides for a wide range of helpful insights.