Vehicle Excise Duty
Vehicle Excise Duty (or 'VED') is the correct name for the annual tax on the use of a vehicle on a public road, often called the 'tax disc' or 'annual road fund licence'.
The rate of Vehicle Excise Duty is based on tables produced by the Driver & Vehicle Licensing Agency ('DVLA').
It is a legal requirement to have a valid VED, even if the amount you have to pay is zero (you must still register for the exemption).
The printed paper tax disc was abolished in 2014, and enforcement is now primarily through the use of Automatic Number Plate Recognition ('ANPR') cameras linked to the DVLA database.
Statutory Off-Road Notification ('SORN')
If a vehicle is not being used or parked on a public road, the owner must make a 'SORN' declaration to avoid VED penalties.
Penalties
Failure to tax a vehicle or declare a SORN can result in fines and the vehicle being clamped.
How VED is Calculated
The amount of VED you pay depends heavily on when your vehicle was first registered, its CO2 emissions, fuel type, and its list price.
Vehicles Registered from April 1, 2017:
- First Year: Vehicle Excise Duty is based on the vehicle's CO2 emissions (see below on electric cars).
- Second Year Onwards: A standard annual rate applies (currently £195 for most cars as of April 2025).
- Expensive Car Supplement: Cars with a list price (the price before any discounts) of more than £40,000 pay an additional supplement of £425 a year for five years (from the second year to the sixth year of the car's life).
Vehicles Registered Between March 1, 2001, and March 31, 2017:
- Rates are based entirely on CO2 emissions bands and the fuel type of the vehicle.
Vehicles Registered Before March 1, 2001:
- Rates are based on engine size (either below or above 1549cc).
From 1 April 2025, zero-emission vehicles such as electric cars and vans are no longer exempt from VED and are subject to a lower first-year rate and then the standard annual rate thereafter.
Exemptions
Some vehicles are exempt from VED, though you still need to apply for the exemption. For example, vehicles used by a disabled person or 'historic vehicles' (these must be over 40 years old).
VED Surcharge
Cars with a list price of more than £40,000 when registered new are subject to a surcharge for the 2nd, 3rd, 4th and 5th years after registration (the first year is already taxed at a higher rate).
Tax Disc Calculator
You can use our Vehicle Excise Duty or 'tax disc' calculator to find out how much you will need to pay for cars currently on sale as 'new' in the UK.
For other cars not on sale as new, you can use the official DVLA vehicle tax rate tables to find out how much VED you will need to pay.