What You Need to Know About ULEZ Compliance and Car Tax - Select Car Leasing

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What You Need to Know About ULEZ Compliance and Car Tax

The Ultra Low Emission Zone (ULEZ) is a significant part of London’s strategy to tackle air pollution. 

After an expansion in 2023, it now covers all of Greater London and affects millions of drivers.

So what does that mean for you? This article explains what ULEZ compliance means, how to check if your vehicle meets the standards required, and why shifting to electric vehicles will make your life easier.

What is ULEZ and why does it matter?

Introduced in April 2019, the ULEZ was designed to reduce harmful vehicle emissions in London. Initially, it covered the same area as the Congestion Charge zone, but expansions in 2021 and 2023 have extended its reach to cover all of Greater London, encompassing 33 boroughs. It broadly covers the area inside the M25 motorway.

ULEZ exists to improve air quality. By favouring cars that emit fewer nitrogen oxides (NOx) and particulate matter, the aim is to reduce respiratory and cardiovascular diseases in the London area. Non-compliant vehicles are charged £12.50 each day. That’s on top of the £15 Congestion Charge in the centre of London.

The existence of ULEZ, and its expansion, has proved controversial with many drivers in London, and discussions and political debate will likely continue. The Mayor of London’s office says the ULEZ is working better than predicted, with London’s air quality improving at a faster rate than the rest of England. Reports suggest that 96% of vehicles driving in London are compliant as of 2024.

But regardless of the arguments, compliance for drivers in London can have a big financial impact, especially as similar zones, known as Clean Air Zones (CAZ), continue to be introduced in other UK cities.

How to check if your vehicle is ULEZ compliant

Checking to see if your car is ULEZ compliant is easy, and essential if you want to avoid charges. The quickest and easiest way is to use the Transport for London (TFL) website’s ULEZ checker. Simply type in your vehicle registration (your number plate) and the site can instantly work out whether you need to pay the ULEZ charge or not.

The emissions standards are as follows:

  • Petrol cars must meet Euro 4 standards, which generally means vehicles registered after January 2006.
  • Diesel cars must meet Euro 6 standards, which were typically registered after September 2015.
  • Electric vehicles (EVs) are ULEZ compliant as they have zero exhaust emissions.
  • Hybrids have to meet the same Euro standards as petrol or diesel cars.

You can also check your vehicle’s emission standard in your V5C logbook, under section D.2 in Section 1. However, not all V5Cs contain this information. If you’re not clear, contact the car manufacturer.

Some vehicles that don’t meet these criteria are still exempt from ULEZ charges, including vehicles more than 40 years old, military vehicles, agricultural vehicles and certain disabled passenger vehicles, which are currently exempt until 2027.

How does ULEZ relate to car tax? 

While not directly related, there is a link. From April 1, 2025, electric, zero, or low emission vehicles will be taxed in the same way as petrol and diesel vehicles, having previously been exempt. The first year's rate will be £10, and the standard rate will be £195 for subsequent payments.

Penalties for non-compliance with ULEZ

Driving into the ULEZ with a non-compliant vehicle will result in a daily charge of £12.50 for cars, vans and motorcycles or £100 for heavier vehicles, such as lorries. Charges are enforced by cameras on every road in and out of the ULEZ.

Failure to pay the daily charge on time – midnight on the third day after driving in the zone – results in a penalty of £180, or £90 if paid within 14 days.

Shifting to electric vehicles

Many drivers are turning to EVs to avoid compliance issues in the ULEZ, as well as in other clean air zones around the UK and abroad. Bristol, Bath and Birmingham are just some of the UK cities that will charge non-compliant cars for driving within their boundaries. As emissions regulations get ever tighter and such zones expand into new areas, the benefits of EV driving are numerous.

As well as ULEZ exemption, EVs offer lower running costs, tax exemptions (until April 2025) and freedom from congestion charges (until December 25, 2025, when the exemption for zero-emission vehicles and electric vehicles from London's Congestion Charge will end). 

Many places offer discounted or free parking for EVs, too. As EV technology improves, the drawbacks of going electric are fewer and fewer.

For more information, check out our guides on why you might want to lease an electric car, and some electric cars that you might want to check out. And don't miss our electric vehicle lease deals


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