Glossary · UK
What is VED (Road Tax)?
Vehicle Excise Duty — UK annual road tax. £195 flat from year 2 for most cars.
Full Definition
VED (Vehicle Excise Duty), commonly «road tax», is the UK annual tax on vehicle use. From April 2025, EVs pay VED for the first time (previously exempt). Year 1 (first registration) based on CO2 emissions: £10 to £5,490. Year 2+: £195/year flat for petrol/diesel/EV. Cars over £40,000 list price pay an extra £425/year «expensive car supplement» for 5 years (years 2-6). Paid annually, semi-annually or monthly to DVLA. Pre-2001 cars use the older engine-size system. Trade plates and historic vehicles (40+ years) are exempt.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.