In the UK, Vehicle Excise Duty (VED), or “road tax”, is an annual fee paid for operating a vehicle on public roads.
The amount of VED paid typically depends on the following factors:
- The vehicle’s CO2 emissions (how polluting it is) according to the V5 registration document of the vehicle. This applies to cars registered before April 2017.
- For vehicles registered after April 2017, the first year’s payment reflects CO2 emissions, but subsequent years have a flat rate of £190 for cars worth less than £40,000.
- Cars with a list price of over £40,000 when new pay an additional rate of £390 per year on top of the standard rate, for five years.
- Some vehicles, such as brand new cars with zero CO2 emissions, are exempt from VED (providing they have a list price of less than £40,000).
- New diesel vehicles not up to Euro 6d emission standards are typically charged a supplement on their First Year Rate. This effectively moves the vehicle up one VED band.
VED bands and rates for cars first registered on or after 1 April 2017
| CO2 emissions (g/km) | Standard rate | First year rate |
| 0 | £0 | £0 |
| 1-50 | £190 | £10 |
| 51-75 | £190 | £30 |
| 76-90 | £190 | £135 |
| 91-100 | £190 | £175 |
| 101-110 | £190 | £195 |
| 111-130 | £190 | £220 |
| 131-150 | £190 | £270 |
| 151-170 | £190 | £680 |
| 171-190 | £190 | £1,095 |
| 191-225 | £190 | £1,650 |
| 226-255 | £190 | £2,340 |
| Over 255 | £190 | £2,745 |
VED bands and rates for cars registered on or after 1 March 2001 but before 1 April 2017
| VED band | CO 2 emissions (g/km) | Standard rate |
| A | Up to 100 | £0 |
| B | 101-110 | £20 |
| C | 111-120 | £35 |
| D | 121-130 | £160 |
| E | 131-140 | £190 |
| F | 141-150 | £210 |
| G | 151-165 | £255 |
| H | 166-175 | £305 |
| I | 176-185 | £335 |
| J | 186-200 | £385 |
| K | 201-225* | £415 |
| L | 226-255 | £710 |
| M | Over 255 | £735 |
*Including cars emitting over 225g/km registered before 23 March 2006.
