Some motorists are set to be hit by big cost rises in the next few months
Motorists are being told to buckle up for a raft of shake-ups to driving rules and regulations coming in 2026, with experts sounding the alarm. A major revamp is on the cards thanks to Labour’s delayed new Road Safety Strategy, which is set to put forward three crucial shifts in how we get about on the roads.
Fresh rules are also on the horizon for electric vehicles, possible tweaks concerning self-driving cars, and petrol prices are tipped to climb as a long-running freeze gets the chop. Disabled motorists will be hit hardest in the pocket – facing an average £400 hike – after certain tax breaks are scrapped.
Further changes are in the pipeline for the drink-drive limit, seat belt regulations, and eye examinations for those aged over 70.
Luxury car tax rise April 2026
If the vehicle had a list price that exceeded £40,000 when it was first sold (or £50,000 if your car is electric) then you may also be liable for the ‘luxury car tax’ fee, which adds £425 to the vehicle’s annual VED costs – taking it up to £620.
You may pay less or more if your car was first used before 2017. The exact fee for your annual road tax will boil down to the year your car was first registered, the type of fuel it uses and its tailpipe emissions. Below, we detail the bands and the payment amount.
Electric cars no longer qualify for free road tax, and in April 2026 EV drivers will start paying the £200-a-year flat rate.
READ MORE: Road tax for 13 bands from April 2026 – with some paying £790READ MORE: Cars hit by April 2026 £760 ‘tax trap’ being scrapped including Mondeo, Golf, Zafira – list
Vehicle Excise Duty (VED) rises for vehicles registered between March 1, 2001, and April 1, 2017
Cars which produce more than 225g of CO2 emissions per kilometre are hit by Vehicle Excise Duty (VED) – with those producing 201-225g/km paying £430, 226-255g/km £735 and over 255g/km £750. And the bands are set to rise with the £735 going up to £760 and the £750 over 255g/km expected to hit £790 from April 2026.
Expected 2026-2027 car tax rates for vehicles registered between March 1, 2001, and April 1, 2017
- Up to 100g/km – Remains at £20
- Between 101 and 110g/km – Remains at £20
- Between 111 and 120g/km – Remains at £35
- Between 121 and 130g/km – Rising from £165 to £170
- Between 131 and 140g/km – Rising from £195 to £200
- Between 141 and 150g/km – Rising from £215 to £225
- Between 151 and 165g/km – Rising from £265 to £275
- Between 166 and 175g/km – Rising from £315 to £325
- Between 176 and 185g/km – Rising from £345 to £360
- Between 186 and 200g/km – Rising from £395 to £410
- Between 201 and 225g/km – Rising from £430 to £445
- Between 226 and 255g/km – Rising from £735 to £760
- Over 255g/km – Rising from £750 to £790
Luxury motors axed and tax breaks slashed from Motability scheme.
From 25th November 2025, high-end cars were kicked off the Motability scheme. This impacts motors from the likes of BMW, Audi and Mercedes, plus all coupes and convertibles.
These steps were brought in to ramp up the number of British-built vehicles snapped up through the Motability scheme.
Motability tax relief removed
Motability tax relief scrapped In November’s Budget, Chancellor Rachel Reeves revealed that VAT will be slapped on Advance Payments from July 2026, whilst Insurance Premium Tax will hit Scheme leases. Motability, the firm running the massive scheme responsible for one in every five cars sold across Britain, has calculated that the typical Advance Payment – the upfront cost – for a motor will jump by roughly £400 across the three-year package.
The insurance premium tax will be replaced with a standard 12% rate applied to insurance policies for the majority of new vehicle leases within the scheme. The DWP has confirmed that cars ‘significantly adapted for wheelchair users’ won’t be impacted by the tax shake-up.
Changes to driving licence renewal for over 70s
Speculation is mounting that the government could soon overhaul how over-70s renew their driving licences, though nothing has been rubber-stamped yet. There’s increasing pressure for motorists aged 70 and above to be banned from getting behind the wheel if they can’t pass a mandatory eye test.
This comes after opticians raised the alarm about the sheer number of drivers they examine who simply aren’t safe to be on our roads. Currently, anyone over 70 must renew their driving licence every three years.
The existing system also relies on people honestly declaring their own medical conditions.
Should these reforms go ahead, an eye test could become a compulsory element of the renewal procedure.
Drink drive limit
Drink drive limit The existing drink-drive limit of 80mg of alcohol per 100ml of blood could be reduced to 50mg alcohol per 100ml of blood, aligning it with the tougher threshold already in place in Scotland.
Seatbelt laws
Seatbelt regulations are also poised to become stricter. Currently, drivers caught without a seatbelt risk a fine of up to £500.
But under the new proposals, motorists would additionally receive three penalty points on their licence for not wearing a seatbelt.
Driving theory tests
Starting in 2026, driving theory tests will incorporate new questions about cardiopulmonary resuscitation (CPR). The Driver and Vehicle Standards Agency (DVSA) has refreshed the first aid element of the driving theory test to provide more learner drivers with crucial life-saving knowledge.
The driving theory test, which learners must clear before booking their practical driving test, will contain improved first aid questions covering CPR and automated external defibrillators (AEDs) from early 2026.
Driving theory tests to include new CPR questions from 2026
The DVSA is optimistic that this modification will help boost the UK’s poor cardiac arrest survival rates by ensuring more individuals understand how to react during emergencies. The changes won’t impact the price, length, or difficulty of the driving test.
The DVSA has already revised its official learning resources to incorporate this new material, giving learner drivers plenty of time to get acquainted with the updates before 2026.
Benefit in Kind
Benefit in Kind (BiK) is set to rise for all vehicles in the 2026/27 financial year. Benefit in Kind (BiK) is the tax incurred when buying a car through your company’s salary sacrifice scheme.
BiK rates, like vehicle excise duty, are calculated based on your car’s CO2 emissions.
BiK rates have held steady since 2022, but experienced a 1% increase in April 2025. Another 1% rise is now anticipated for the 2026-27 financial year.
From 6th April 2026, electric vehicles will face a 4% BiK rate, rising from the current 3%. The BiK rate continues to climb according to the vehicle’s CO2 emissions, reaching a maximum of 37% for cars emitting over 154g/km CO2.
Electric car supplement
The electric car supplement will rise to £50,000 for EVs from April 2026, as confirmed in Budget 2025. This change increases the VED (Vehicle Excise Duty) Expensive Car Supplement (ECS) threshold for zero-emission cars from its current level of £40,000 to £50,000.
This means that zero-emission cars with a list price above £40,000 but not exceeding £50,000 will no longer be required to pay the ECS charge when they apply for a licence effective on or after 1 April 2026, which is not a first vehicle licence. The threshold will stay at its current level of £40,000 for all other cars.
This alteration works backwards in time, which means the vast majority of vehicles registered from 1 April 2025 won’t need to cough up the charge. Any motors seeking a second licence that kicks in before 1 April 2026 will only be stung for one year’s worth of the fee.
Congestion charges set to climb as electric vehicle exemption gets axed
Come 2026, the congestion charge is jumping from £15 to £18 daily if settled on or before the day of travel, and from £17.50 to £21 daily if paid within three days afterwards.
Changes to Cleaner Vehicle Discount
The existing 100% Cleaner Vehicle Discount will be scrapped on 25 December 2025. Taking its place, electric car drivers can grab a 25% discount whilst electric van, HGV and quadricycle drivers can bag a 50% discount on the daily charge – but only if they’re signed up to Auto Pay.
This would slash the daily charge to £13.50 for electric cars, and £9 for electric vans, HGVs and quadricycles.
Fresh cars and vans must meet Euro 7 emission standards from 2026
Emission standards are vital in keeping a lid on the pollution pumped out by vehicles, which helps boost air quality. The most recent emission standard rating, Euro 6, came into force on 1 September 2015.
Euro 7, which the EU adopted in April 2024 to cut down on vehicle pollution across Europe even further, is due to roll out from 29 November 2026 onwards.
Learner drivers to get greater say over driving test bookings from spring 2026 In a bid to tackle a substantial backlog partly driven by people bulk-booking tests and flogging them on, a crucial rule change is coming into force from Spring 2026, the DVSA has confirmed. The new regulations will mean that only learner drivers themselves will be allowed to book their own driving test.
Electric Vehicle Excise Duty
From April 2028, electric cars and plug-in hybrids will face charges based on mileage under a new Electric Vehicle Excise Duty (eVED) brought in by the government. Under eVED, electric cars will be hit with a 3p charge per mile driven, whilst plug-in hybrids will pay 1.5p per mile, with both rates rising annually in line with inflation.
The eVED is set at roughly half the fuel duty paid by petrol car drivers and will be added on top of the standard VED, currently £195 per year. The mileage will be verified annually, typically during the MOT test, and the payment system will be built into the existing VED framework.
Self-driving cars
Self-driving cars could be cruising UK roads as early as 2026, following the passage of the Automated Vehicles (AV) Act in May 2024. The AV Act requires rigorous safety testing for all autonomous vehicles.
These vehicles are required to prove they can operate as safely and competently as human motorists, passing rigorous safety checks before being allowed onto Britain’s roads. Ministers expect the technology to cut road accidents and deaths, drive economic expansion and employment opportunities, improve the nation’s transport network, enable the movement of vital goods, and strengthen connectivity across the UK.
