Vehicle Excise Duty (VED) - Passenger cars (2024-25)

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.

Lynne Gill

My area of expertise is land and property transactions but I have extensive knowledge of both domestic and international VAT and I love complex VAT queries. I have an Honours degree in Business Studies and a VAT legal and technical qualification from the Institute of Indirect Taxation.

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Vehicle Excise Duty (VED) - Passenger cars (2024-25)

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In the UK, Vehicle Excise Duty (VED), or “road tax”, is an annual fee paid for operating a vehicle on public roads.

VED bands and rates for cars first registered on or after 1 April 2017

VED bands and rates for cars registered on or after 1 March 2001 but before 1 April 2017

Lynne Gill

Tax Saving Guide 2025-26

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