New driving laws 2027: what changes, and when

Car tax is set to rise on 1 April 2027 and fuel duty on 1 July. The per-mile tax on electric cars isn't due until April 2028, and there's no fuel duty rise set for January.

Reading time 6 minPart of Laws and fines

The short answer

  • 7 January: it's against the law in Great Britain for a business to advertise a car as "self-driving" unless it's authorised as one.
  • 16 February to 3 March: a tribunal is due to hear the challenges to the FCA's car finance compensation scheme.
  • March: new cars get 27 number plates under DVLA's plate scheme.
  • March: DVLA aims to let you tax a car from inside your online account.
  • 31 March: the last day for some Northern Ireland learners to pass under the old rules.
  • 1 April: Northern Ireland's new driving test starts, and learners need a finished training logbook before booking. Both dates are law.
  • 1 April: car tax is set to rise.
  • 1 July: fuel duty is set to rise by 7.64p a litre.

The car tax and fuel duty changes were announced in the Budget and aren't law yet.

Fuel duty isn't set to rise in January. The per-mile tax on electric cars isn't due until April 2028. The road safety consultations had no outcome by November 2026.

Car tax is set to rise on 1 April 2027

Car tax is set to rise in line with RPI inflation from 1 April 2027.

For a car first registered on or after 1 April 2017, the standard rate is set to go from £200 to £210. That's the yearly rate from a car's second year. Electric cars registered since April 2017 pay the same rate.

Cars registered between 1 March 2001 and 31 March 2017 are taxed by CO2 band. Most bands are set to rise by £10 to £35. The three lowest, A to C, don't change.

The car tax bands guide shows which rate a car you're buying falls under. Our free car check shows a car's current tax status and MOT history from its number plate.

You can already tax a car online with the reference number from your reminder letter or V5C logbook. DVLA's business plan for 2026 to 2027 sets a target of March 2027 for letting you do it from inside your online account.

Fuel duty: January rise cancelled, a bigger one set for July

Fuel duty on petrol and diesel is 52.95p a litre. That includes a temporary 5p cut, which has been in place since 2022 and was due to end in January 2027.

Under the Budget plans, the cut is set to run until 30 June 2027 instead, so the rate stays where it is in January.

On 1 July 2027, the cut is set to end, and a delayed inflation rise is added the same day. That takes the rate to 60.59p, which is 7.64p more in duty.

With VAT on top it comes to about 9p a litre at the pump, or about £4.60 on a 50-litre fill, if retailers pass it all on.

Car finance compensation: a hearing from 16 February

The FCA's car finance compensation scheme is partly suspended while it's challenged at the Upper Tribunal.

The FCA says the hearing is due to run from 16 February to 3 March 2027, with a judgment expected in the following months. Until the legal process ends, lenders don't need to calculate or pay compensation under the scheme.

If you're worried about your car finance agreement and haven't complained yet, you can complain to your lender directly, for free. You don't need a law firm or a claims company, which may charge up to 36% of any compensation.

27 number plates from March

New cars registered from March 2027 get a 27 plate. From September 2027, it's 77. The numbers come from DVLA's age-identifier scheme, which marks the six months a car was first registered in.

A 27 can't go on an older car. DVLA's rule is that you can't use a registration number to make your vehicle appear younger than it actually is.

The 27 plates guide covers buying a 27 number.

Northern Ireland learners: 31 March and 1 April

These dates are part of graduated driver licensing, Northern Ireland's new rules for learners and new drivers. Nothing here changes for learners in England, Scotland or Wales.

If your provisional licence began before 1 October 2026, you can take the current practical test up to and including 31 March 2027. The Department for Infrastructure says a pass in that window means the amber R plate and 45mph limit for 12 months.

Car test appointments are released three months ahead, on the first working day of each month, and it may take a while to get one. So if you're aiming to pass by 31 March, book early.

If you haven't passed by 31 March, the new rules apply to you from 1 April 2027.

From that day, every learner must complete the Programme of Training and Logbook before booking the practical test. For a car, that's 14 compulsory modules, each signed off by your supervising driver or instructor.

A new practical test starts on 1 April too. Independent driving lasts about 20 minutes, a sat nav is used, and the "show me, tell me" questions are asked on the move.

After a pass under the new rules, you show R plates for two years.

If your provisional licence began after 1 October 2026, the new rules apply whenever you pass. A car learner also can't take the test until at least six months after the licence became valid, unless they're entitled to Carer's Allowance.

Coming next: per-mile tax on electric cars, set for April 2028

Nothing is payable in 2027. The per-mile tax was announced in the 2025 Budget and is set to start on 1 April 2028.

The rate is 3p a mile for electric and hydrogen fuel cell cars and 1.5p a mile for plug-in hybrids. It covers cars only.

You'd first pay it when you renew your car tax after April 2028. It's paid as well as car tax.

Proposed, not decided

Four road safety consultations closed on 11 May 2026. By November 2026, the government hadn't published a decision on any of them, so none has a start date.

They cover penalties for motoring offences, a minimum learning period for learners, eyesight tests for older drivers, and moped and motorcycle training.

The penalties one asks whether the drink-drive limit in England and Wales should be lowered or stay the same. It proposes no figure. Scotland's limit is already lower, at 50mg of alcohol in 100ml of blood against 80mg.

Our 2026 round-up has the background, and our laws and fines guides cover the rules in force now.

Common questions

Is fuel duty going up in January 2027?

No, under the Budget plans. The rate is set to stay at 52.95p a litre until 30 June 2027, then go to 60.59p from 1 July.

Do electric cars pay per-mile tax in 2027?

No. The per-mile tax is set to start on 1 April 2028, at 3p a mile for electric cars and 1.5p for plug-in hybrids. You'd first pay it when you renew your car tax after April 2028.

Is car tax going up in April 2027?

It's set to, from 1 April 2027. The standard rate for cars registered from 1 April 2017 is set to go from £200 to £210, and electric cars pay it too.

Is the drink-drive limit changing in 2027?

Nothing has been decided. A consultation that closed in May 2026 asked whether the limit in England and Wales should be lowered or stay the same, and it proposed no figure. By November 2026 the government hadn't published a decision. Scotland's limit is already lower.

Do these changes apply in Northern Ireland?

Some do. Car tax is set to rise across the UK, including Northern Ireland, and the per-mile tax covers UK-registered electric cars. The 31 March and 1 April learner dates apply only in Northern Ireland. The rule on "self-driving" in adverts covers Great Britain only.

Sam White runs CarCheck123, helping UK used-car buyers avoid expensive mistakes.