Car changing is a big deal
UK drivers, take note: 2026 brings changes that could hit your wallet, car, and licence. Here are 11 must-know updates.
If you own or lease a car, be aware of these major 2026 changes that could impact your wallet, car, and licence. Here are 11 things you need to know to stay safe and legal.
Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.
1. Digital driving licences are here
Your driving licence will be going digital, with a full rollout expected by 2027. While your physical card will still be valid, it’s important to update your address, medical information, and entitlements online. Not doing so could lead to fines or enforcement problems.
2. New rules for learner drivers
If you’re learning to drive, you’ll now need to give at least 10 working days’ notice if you want to cancel or reschedule a driving test. From spring 2026, driving instructors won’t be able to book tests for you, and there will be limits on rescheduling. These changes are designed to make the booking process fairer and protect your personal data.
3. MOTs, tax, and vehicle checks
Authorities, including the police, will be using automated cameras (ANPR) to spot untaxed or untested vehicles more easily. To avoid getting a fine or having your insurance invalidated, make sure your MOT, tax, and registration are always up to date.
4. Electric car tax
If you bought a new electric car from 1 April 2025, it’s no longer completely tax-free. From its second year on the road, you’ll need to pay £195 per year. Taxes on luxury EVs are also going up, but the higher-rate threshold is increasing from £40,000 to £50,000, so fewer drivers will be hit by the extra cost.
5. Fuel duty and company car tax
Fuel duty will rise from September 2026, ending the long-standing 5p-a-litre cut. Company car tax is also changing: electric cars move from 3% to 4%, while high-emission cars could see rates as high as 37%.
6. Motability scheme updates
Luxury cars are being removed from the Motability scheme. And from July 2026, VAT and insurance costs will rise on Advance Payment vehicles, though Wheelchair Accessible Vehicles will remain exempt.
7. Increase in congestion charges
From today (2 January), the congestion charge in London are going up to £18 per day (£21 if paid late). Discounts for EVs are shrinking too: electric cars now get 25% off, and vans and HGVs receive a 50% discount.
8. Euro 7 emissions
From November 2026, all new cars and vans must meet Euro 7 emissions standards. These stricter rules are designed to cut pollution and improve air quality across the UK.
9. Road safety updates
Some road safety rules are set to change this year. If you’re over 70, you might need to pass a mandatory eye test. The drink-drive limit is dropping to 50mg per 100ml of blood (from 80mg per 100ml), and not wearing a seatbelt could land you three points on your licence.
10. The arrival of self-driving cars
You might spot a self-driving car on our roads this year. Don’t worry, they’ll have to meet strict safety standards just like human drivers and are designed to cut accidents and make getting around easier.
11. Driving theory test changes
Learner drivers will face new questions on resuscitation (CPR) and using an Automated External Defibrillator (AED) in the theory test. These updates aim to improve emergency response skills and make roads safer for everyone.
2026 is set to be a year of big changes for UK drivers. From digital licences and new EV taxes to higher congestion charges and self-driving cars, there’s a lot to keep up with. Staying on top of your MOT, tax, and licence now can help you avoid fines, save money, and make driving a little less stressful.
Car change? Carwow!
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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