- within Transport, Antitrust/Competition Law and Employment and HR topic(s)
- with Inhouse Counsel
2026 looks set to be a significant year in the road to autonomous driving in Great Britain and, against a backdrop of fragmented global regulation for the deployment of autonomous vehicles (AVs), the UK Government is seeking to put itself near the front of the pack by encouraging AV trials and by having established high-level regulations in the form of the Automated Vehicles Act 2024 (the AV Act).
This Article provides an overview of the regulatory environment for AVs in Great Britain under the AV Act and explores some of its core components in more detail.
Introduction
Trials of self-driving passenger vehicles by Waymo, Wayve and Baidu (partnering with Uber and Lyft) are hitting London's roads in 2026 and, globally, several OEMs, including Tesla, Mercedes, BMW, Ford and GM, are actively refining or developing SAE Level 3 'eyes off' Advanced Driver Assistance Systems (ADAS) for private vehicles.
As AV technology continues to develop, we are seeing differing approaches to AV regulation globally as governments look to balance the adoption of innovation with safety, as well as the public perception of autonomous driving.
In the UK, the Government has supported and facilitated the start of the AV transition by:
- encouraging AV trials, including through the publication of the Department of Transport's Code of Practice which seeks to help guide organisations planning to trial or pilot AV technologies and services; and
- providing the overarching regulatory framework which will govern AVs in Great Britain though the AV Act (which includes provisions related to the authorisation of AVs, the creation of new regulated bodies, driver immunity and marketing restrictions).
By putting in place this regulatory framework and accelerating trials for AV passenger services, the Government is looking to position the UK as a global leader in the adoption of AV technology. Of course, the introduction and regulation of AV technology is, by its nature, complex. Beyond the AV Act, there will be many other regulatory frameworks which will need to be considered and navigated, including requirements imposed by / approvals required by relevant bodies and authorities (for example, transport and local authorities). There are also likely to be challenges – particularly when comparing the relative complexity of London's roads with larger US cities with more formulaic road systems – but the direction of travel is clear.
It should be noted that many of the provisions of the AV Act are not yet in force and various implementing measures and statutory guidance are still to be published and, in December 2025, the Government launched its call for evidence 'Developing the automated vehicle regulatory framework' (which closes on 5 March 2026) seeking views on several sections of the AV Act.
Core Components of the AV Act
Authorisation requirements and the "self-driving test"
Vehicles – whether fully autonomous or having autonomous features – must be authorised for autonomous use1 . At a minimum, such authorisation will require the vehicle to pass a "self-driving test",2 which requires that the vehicle:
- is designed or adapted to include one or more features that allow it to travel autonomously (defined as "controlled by equipment of the vehicle, not an individual; and neither the vehicle nor its surroundings are being monitored by an individual with a view to immediate driving intervention"); and
- can do so, by means of that feature, safely and legally3.
A distinction is drawn under the AV Act between two modes of operation for autonomous features: (1) "no user in charge" (NUiC) where a vehicle can self-drive for the whole of a journey (i.e. akin to SAE Levels 4 and 5); and (2) "user in charge" (UiC) where a vehicle may require a driver to take control of the vehicle for at least part of the journey4 (i.e. akin to SAE Level 3).
Authorisation for an AV must specify the features that result in a vehicle satisfying the self-driving test and, in relation to each feature:
- whether the feature's mode of operation is NUiC or UiC;
- how it is engaged / disengaged; and
- the locations and circumstances by reference to which the vehicle satisfies the self-driving test by virtue of the feature5.
The AV Act provides for the publication of statutory guidance - 'a Statement of Safety Principles' - which will be applied in assessing whether a vehicle passes the self-driving test6. The focus of these principles will be on:
- ensuring that authorised AVs are at least as safe as careful and competent human drivers; and
- ensuring that road safety in general will be improved by the use of authorised AVs7.
Authorised self-driving entities and NUiC operators
Each authorised AV must have an Authorised Self-Driving Entity (ASDE)8 – typically the OEM or the AV software developer – which will be responsible for ensuring that the vehicle continues to satisfy the self-driving test. ASDEs must be of good repute and financial standing and able to discharge any authorisation requirements imposed on them9.
In addition, the AV Act allows for regulations to be made to establish a licensing scheme for operators of NUiC vehicles (NUiC Operators)10. The detail will be contained in those regulations, but the objective will be to ensure that NUiC Operators are responsible for the detection and resolution of issues for the NUiC journeys that they oversee (e.g. breakdowns)11. It is an offence to use a NUiC vehicle without oversight by a licensed operator.
Clarity over control - UiC transition demands
In the case of UiCs, the AV Act introduced the concept of a "transition demand" – i.e. a demand communicated by the vehicle when an authorised UiC feature is engaged, which will request that the UiC takes back control of the vehicle by the end of a set transition period12.
Clarity over the transition point between the UiC and the vehicle will be crucial, not only from a safety perspective but also due to the liability consequences that could stem from that transition (see further below). The AV Act therefore requires the imposition of authorisation requirements that secure, as far as reasonably practicable, that:
- the transition demand is capable of being perceived by anyone who might legally be a UiC;
- the transition period is sufficient for the UiC to prepare to assume control;
- the vehicle will travel autonomously, safely and legally during the transition period;
- the vehicle will make a further communication at the end of the transition period to alert the UiC to it ending; and
- the vehicle will deal safely with a situation where the UiC fails to assume control by the end of the transition period13.
Driver liability – the immunity regime
The delineation between a vehicle's automated driving and that of its UiC is reflected in clear lines of legal liability: where an authorised automated feature is engaged, the UiC will not be deemed responsible for the actions of the AV and will not therefore be liable for any loss or damage it may cause14. There are certain exceptions to this immunity, which include:
- acts which take place after a valid transition demand has been issued by the vehicle and the transition period has ended (making it clear that UiCs need to remain ready to take back responsibility as drivers);
- offences which do not relate to the dynamic driving of the vehicle; and
- offences relating to tampering or inappropriate use of autonomous technology15.
Where an authorised AV feature is engaged (and UiC immunity therefore applies as set out above) responsibility for how the vehicle drives falls on the ASDE (but see further below with regards to the insurance position).
Insurers' liability position under the AEV Act
Since it came into force in 2021, the Automated and Electric Vehicles Act 2018 (the AEV Act) has imposed primary civil liability for all accidents caused by an AV on the vehicle's insurer. Having met the primary liability (e.g. by paying claims brought by persons injured in other vehicles), the insurer can then seek to recover its outlay by pursuing secondary claims against any party – e.g. a driver or an OEM – which was in fact responsible for the accident.
This regime will continue to apply once the liability provisions of the AV Act come into force. Insurers will remain liable in the first instance, with potential recourse – guided by the provisions in the AV Act (including the immunity regime) – to recover its losses from parties deemed responsible for any accident.
Information provision and related offences
Under the AV Act, ASDEs and NUiC Operators may also be subject to:
- requirements in relation to the collection and sharing of information16 ; and
- a requirement to appoint a nominated individual to be responsible for the information provided17.
In addition, the AV Act provides the Secretary of State with the power to issue information notices and interview notices to ASDEs and NUiC Operators for investigative purposes18 and establishes a number of related offences, including failure to provide requested information, or providing false or misleading information. To ensure accountability for vehicle safety, a nominated individual will also be deemed to have committed an equivalent offence. The corporate and individual offences are subject to a due diligence defence19.
It will be an offence for any person subject to the obligation (aggravated where death or serious injury occurs) to:
- provide information which is false or misleading in relation to the safety of its AVs; or
- destroy, suppress or alter information (or cause or permit the same) with the intention of preventing the provision of accurate information20.
Marketing
The AV Act creates an offence in respect of promotional communications which hold out as being self-driving, vehicles which are not authorised AVs. The Act provides for regulations to be made which specify words and symbols (and similar) capable of use for the promotion of authorised AVs only (with use of those terms for a non-authorised vehicle being an offence)21.
This follows regulatory concerns and court cases including in China, the US and France related to claims that cars equipped with SAE L2 with ADAS features are 'self-driving'.
Draft regulations were published, along with a consultation on their contents, in Summer 2025. These proposed a prohibition on using any of the following words and phrases (or variations thereof) to describe any vehicles that are not authorised AVs:
- automated;
- automated driving;
- autonomous;
- autonomous driving;
- drive autonomously;
- drive itself;
- driverless; or
- self-driving.
The consultation closed in September 2025, but the results have yet to be released.
Comment – David Bennett, Partner
"The regulatory framework which governs autonomous vehicles in the UK is developing rapidly and is now well advanced and clearly thought-through relative to comparable markets. The passage of two key pieces of legislation in recent years shows that the UK government is keen to prioritise the further development of a legal framework which encourages investment while ensuring the safe operation of AVs and clear legal recourse in the event of accidents. Coupled with increasing numbers of trials of AVs on the UK's roads, 2026 is set to be a pivotal year for the sector".
Footnotes
1 Section 3
2 Section 1(2), Section 3(1) and Section 5
3 Section 1(2)
4Section 46
5 Section 4(1) and (3)
6 Section 2(1) and (2)
7 Section 2(2)
8 Section 6(1)
9 Section 6(4)
10 Section 12(1)
11 Section 12(5)
12 Section 7(2)
13Section 7(3)
14Sections 47 – 49
15 Section 48
16 Section 14
17 Section 15
18 Sections 17 & 18
19 Section 20
20 Sections 24, 25, 26 and 27
21 Section 78
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.