UK Car Tax 2026: Fuel Duty, EV Luxury Tax, Congestion Fees — December 31
UK car tax changes 2026 will reshape driving costs across Great Britain. From 1 April, the Expensive Car Supplement threshold for zero emission cars moves to £50,000. In September, the fuel duty freeze is scheduled to end, which could lift pump prices. In London, the EV congestion charge exemption ends in 2026 alongside a higher daily fee. Euro 7 arrives in November. As of 31 December, we outline the confirmed dates, who pays more or less, and what to watch next.
Fuel Duty: Freeze Ending September 2026
The current freeze is set to conclude in September 2026, so petrol and diesel could become more expensive per litre. That would raise commuting and delivery costs at the same time as other policy shifts bite. Households should factor in extra spend for Q4. This timetable is flagged in recent coverage of key motoring changes for 2026 source.
Families that drive high mileage, and fleets with fuel-heavy routes, face notable sensitivity to any duty rise. Locking in efficient routes, smoother driving, and maintenance can blunt the impact. For planning, treat UK car tax changes 2026 as a package, since fuel, city charges, and vehicle taxes will interact to shape total annual motoring costs.
EV Luxury Tax Threshold Lifts to £50,000 on 1 April
The Expensive Car Supplement threshold for zero emission cars rises to £50,000 from 1 April 2026. This eases the EV luxury car tax for many mid-market models, pushing more list prices below the line. Premium EVs above £50,000 will still face the supplement. Expect manufacturers to highlight trims at £49,995 to appeal to buyers seeking lower ownership costs.
This shift may encourage producers to reconfigure options, wheel sizes, and packs to sit under £50,000. Company car and salary sacrifice schemes could focus on these trims to reduce whole-life costs. For consumers, UK car tax changes 2026 make the price ladder clearer, with a visible cliff edge around the threshold for new orders registered from April.
London Congestion Charge: EV Exemption Ends and Fees Rise
Electric cars will lose their congestion-charge exemption in 2026 and face a higher daily fee. That lifts the cost of driving into the central zone for all users, not just petrol and diesel. Expect more interest in off-peak travel and route planning. The change is part of wider updates flagged for next year source.
As the London congestion charge increases and EVs start paying it, some drivers may shift to rail, buses, bikes, or car clubs. Ride-hailing and parking demand could soften on peak weekdays. Households that must drive should compare season tickets with daily fees. For many, UK car tax changes 2026 will push more trips toward public transport in central areas.
2026 Outlook: Ownership Costs, Sales Mix and Euro 7
The mix of a fuel duty change, the EV luxury car tax threshold at £50,000, and city charging creates new winners and losers. Urban EV drivers face higher city fees, yet mid-price EVs avoid the supplement. High-mileage petrol and diesel users could pay more if duty rises. UK car tax changes 2026 will likely lift focus on running costs over headline price.
Euro 7 arrives in November 2026 and may influence model availability and pricing late in the year. Some buyers could pull forward purchases to secure preferred engines before line-up changes. Dealers may adjust stock and finance offers. Keep receipts, registration dates, and list prices clear, since timing around April and November will matter for tax and compliance.
Final Thoughts
The key takeaway is timing. From 1 April 2026, many zero emission models under £50,000 avoid the Expensive Car Supplement, while premium EVs may pay more. In September, a fuel duty change could lift petrol and diesel costs, pressuring high-mileage drivers. London’s EV congestion-charge exemption ends in 2026, and the daily fee rises, so central trips will cost more. To prepare, set a 2026 motoring budget that combines fuel, tax, insurance, and city charges. Check provisional build and delivery dates before placing orders near the £50,000 threshold. If you commute into central London, compare annual public transport costs with expected daily charges. Track official updates and confirm final rates before committing to a purchase or lease.
FAQs
The freeze is scheduled to end in September 2026. If it does, petrol and diesel prices could rise. Households with long commutes and fleets with fuel-heavy routes should plan extra headroom in Q4 budgets and watch for any Treasury announcements confirming the exact timing and rate.
From 1 April 2026, the Expensive Car Supplement threshold for zero emission cars rises to £50,000. Mid-market EVs priced below that figure avoid the supplement, while premium models above £50,000 still pay it. Expect more trims tuned to sit just under the threshold to lower ownership costs.
Yes. The EV exemption ends in 2026, and the daily fee increases. That means electric drivers entering central London will pay the charge, alongside petrol and diesel cars. If you travel often, compare annual public transport passes with expected driving costs to decide the cheapest option.
Euro 7 introduces tighter emissions standards. Some models may change or be replaced near the deadline, which can affect pricing and availability. If you prefer a specific engine or trim, consider purchase timing. Keep registration dates clear, since other UK car tax changes 2026 also hinge on when the car is first registered.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
