Everything you need to know about the London ULEZ expansion

ULEZ and car leasing: What you need to know

TL;DR: Do I need to worry about ULEZ if I’m leasing?

Almost definitely not.

Modern vehicles, including virtually all new lease cars, meet the required emissions standards as a matter of course. 

And if you lease an electric car (EV), you’re exempt from any ULEZ charge entirely.

The longer answer – covering what ULEZ is, how the daily charges work, which vehicles are compliant, and why leasing puts you ahead of the game – is laid out below.

The lowdown on Ultra Low Emission Zones and what they mean for you

London’s Ultra Low Emission Zone (ULEZ) caused its fair share of controversy when it expanded to cover all 33 London boroughs in August 2023. The politics got noisy, the headlines got louder, and somewhere in the middle a lot of ordinary drivers were left wondering whether they needed to do something about it.

If you drive in London – or you’re thinking about leasing a car and wondering whether ULEZ is something you need to factor in – the good news is that the situation is simple.

The scheme targets older, higher-emission vehicles.

Modern cars, built to current emission standards, largely pass without issue.

And if you’re leasing your car, you’re almost certainly in the clear before you’ve even asked the question.

That’s because leasing and ULEZ compliance have a natural relationship that doesn’t get talked about much. Car leasing keeps you in newer vehicles on shorter cycles, which means you’re always aligned with where emissions standards are heading – not scrambling to meet them in a car you bought years ago.

For anyone considering going electric, the connection is even simpler: EVs are exempt from ULEZ charges entirely.

Here’s everything you need to know.

What is ULEZ?

ULEZ stands for Ultra Low Emission Zone.

Transport for London (TfL) introduced the scheme in April 2019 – the first of its kind in the world – with the aim of cutting dangerous levels of air pollution in the capital.

Air pollution contributes to thousands of deaths across the UK every year. Research undertaken by Imperial College London found that toxic air contributed to the premature deaths of around 4,000 Londoners in 2019 alone.

The ULEZ is one of the tools designed to bring those levels down.

When the scheme launched, it covered central London only. In August 2023, it expanded to take in all 33 London boroughs. Every area of the capital, from the outer edges of Greater London inwards.

The rules themselves haven’t changed since launch, but the zone they apply to has grown significantly.

How does the ULEZ work?

The ULEZ operates 24 hours a day, 364 days a year, with Christmas Day as the sole exception.

There’s no tollbooth to pass through.

A network of cameras across the zone reads number plates automatically, cross-references vehicles against the DVLA database, and charges non-compliant drivers a daily fee.

For non-compliant cars, that daily charge is £12.50 (excluding VAT).

You can check whether any vehicle meets the ULEZ standard using the official TfL vehicle checker at tfl.gov.uk. All you need is the registration number, and the result is instant.

Make sure you’re using the real TfL website for this. After the 2023 expansion, a wave of fake websites appeared imitating TfL’s payment portal, designed to capture payment details and authorise recurring charges.

Any site presenting itself as a third-party handling your TfL transaction is not, in the spirit of British understatement, doing you a favour.

Which vehicles are ULEZ compliant?

The ULEZ sets minimum requirements based on fuel type and the emissions standard a vehicle meets.

Here’s where the main categories stand:

• Petrol cars registered after 2005 generally meet the required Euro 4 standard
• Diesel cars registered after 2015 generally meet the required Euro 6 standard
• Electric vehicles (EVs) are always fully compliant – zero tailpipe emissions puts them well clear of any standard
• Plug-in hybrids (PHEVs) are also always compliant
• Mild hybrids and full hybrids running on a petrol engine are usually compliant if registered from 2005 onwards

A number of vehicles are exempt from ULEZ charges, whether they meet the emissions standards or not. 

Cars taxed as having ‘disabled’ or ‘disabled passenger vehicle’ tax benefit, or wheelchair accessible vehicles (WAVs) converted by mobility experts with one of four different adaptations are exempt until October 2027 – what TfL are calling a ‘grace period’.

People receiving certain disability benefits (or are the parents of a child under three with a critical medical condition) can also make use of this grace period.

Other exempt vehicles (with no grace period or end date) include all vehicles built before January 1973, vehicles over 40 years old that have been registered for a historic vehicle tax class, specialist agricultural vehicles, military vehicles, non-road going vehicles allowed to drive on highways, and certain types of mobile cranes.

As a rough guide, the newer the car, the more likely it is to meet the standard.

Most vehicles manufactured in the last 15 years will be compliant. But if you’re unsure where to start, our guide to the best ULEZ compliant cars is a handy place to begin.

What ULEZ means if you’re leasing

For anyone looking at personal car leasing – a type of long-term rental where you pay a fixed monthly amount to use a vehicle, and hand it back at the end of the term – the ULEZ is a non-issue.

Why?

A new car coming off a production line today will meet emissions standards with considerable headroom.

Manufacturers have been building to Euro 6 standards for years. Euro 6e, the latest iteration, has been mandatory for new registrations since 2021. Euro 7 is coming into force in November 2026 for new vehicle launches, and will become mandatory for all new cars and vans in November 2027.

Any car you lease will be compliant before you’ve even had to check.

The cyclical nature of leasing matters here too. Most lease agreements run for two to four years – the regular turnover means you’re always in a relatively recent vehicle, handing it back before it ages into potential non-compliance.

Compare that to someone who bought a diesel in 2012 and still drives it daily. They have a decision to make about ULEZ driving costs – someone on a rolling car lease doesn’t.

Electric car leasing takes this further still.

EVs are exempt from ULEZ charges entirely. No daily fee, no compliance calculation needed, no concern as emissions standards tighten up over time.

If you’re commuting into or around London regularly, it’s something to bear in mind when weighing up deals.

Leasing and long-term ULEZ compliance

ULEZ isn’t a one-off policy change. It’s the direction of travel in urban areas, with London leading the charge.

Leasing keeps you on the policy track.

Because you’re cycling through newer vehicles on shorter terms, you’re staying ahead of tightening standards, rather than watching them creep up behind you.

The same logic extends beyond the capital.

Birmingham operates a Clean Air Zone (CAZ) with its own daily charges for non-compliant vehicles. Glasgow runs a Low Emission Zone (LEZ). Other UK cities are introducing similar schemes, each with different standards and charges.

But each scheme has the same underlying principle: Older, higher-emission vehicles face increasing costs in city centres.

Leasing a modern car means that conversation stays irrelevant to you, wherever you’re driving.