Editing Vehicle Excise Duty (section)

==Current regulations==
[[File:LT150 (LTZ 1150) from OCE3 (LJ14 SZR), Regent Street Bus Cavalcade.jpg|thumb|Prior to 2014, UK vehicles were required to display a tax disc as evidence of payment]]
VED across the United Kingdom is collected and enforced by the [[Driver and Vehicle Licensing Agency]] (DVLA). Until 2014, VED in [[Northern Ireland]] was collected by the [[Driver and Vehicle Agency]] there; responsibility has since been transferred to the DVLA.<ref name="dva">{{Cite web |url=http://www.northernireland.gov.uk/news-doe-160714-dva-issues-reminder |title=DVA Issues Reminder that all Motor Tax Offices in Northern Ireland Close on 17 July 2014 |publisher=Northern Ireland Executive |archive-url=https://web.archive.org/web/20160416233807/https://www.northernireland.gov.uk/news-doe-160714-dva-issues-reminder |archive-date=16 April 2016 |url-status=dead}}</ref><ref>{{cite news |url=https://www.belfasttelegraph.co.uk/life/motoring/taxing-vehicles-at-northern-ireland-dva-offices-will-end-on-july-17/30377918.html |title=Taxing vehicles at Northern Ireland DVA offices will end on July 17 |work=Belfast Telegraph |first=Rebecca |last=Black |date=24 June 2014 |access-date=15 February 2025}}</ref>

The registered keeper of a vehicle that is liable for VED must pay the appropriate VED amount (which may be zero) to license the vehicle for road use. Owners of registered vehicles which have been licensed since 31 January 1998 and who do not now wish to use or store a vehicle on the public highway are not required to pay VED, but are required to submit an annual Statutory Off-Road Notification (SORN).<ref>{{cite web |url=https://www.gov.uk/make-a-sorn |title=Register your vehicle as off the road (SORN) |website=GOV.UK |publisher=Government Digital Service |access-date=15 February 2025}}</ref> Failure to submit a SORN is punishable in the same manner as failure to pay duty when using the vehicle on public roads.

Until 1 October 2014 a [[vehicle licence]] (tax disc) had to be displayed on a vehicle (usually adhered inside the windscreen on the nearside, thus easily visible to officials patrolling roads on foot) as evidence of having paid the duty. Since that date, the circular paper discs have not been issued and there is no longer a requirement to display a disc as the records are now stored in a centralised database and accessible using the [[vehicle registration plate]] details.<ref>{{cite web |title=Paper tax discs abolished |url=https://www.gov.uk/government/news/direct-debit-and-abolition-of-the-tax-disc |publisher=Gov.uk |access-date=22 January 2014}}</ref>

===Cars===
There are three payment schedules in effect, depending on whether the car was first registered before or after 1 April 2017, or before 1 March 2001. Further changes took effect in April 2025, affecting new and existing electric vehicles.

====Registered before 1 March 2001====
For cars registered before 1 March 2001 the excise duty is based on engine size.<ref name="Vehicle tax rates">{{Cite web |title=Vehicle tax rates |url=https://www.gov.uk/vehicle-tax-rate-tables |access-date=2025-01-10 |website=GOV.UK |language=en}}</ref>

{| class="wikitable"
!
!Cost as of 1 April 2025 (£)
(single annual payment)
|-
!Vehicle engine size <1549 cc
|220
|-
!Vehicle engine size >1549 cc
|360
|}

====Registered before 1 April 2017====
[[File:UK car vehicle excise duty 2013.svg|thumb|upright=0.7|Graph of vehicle excise duty vs theoretical [[carbon dioxide]] emission for cars in the United Kingdom as of 2013, labelled with class bands. The solid blue line denotes the first year and the dashed black line denotes subsequent years. The dotted black line (labelled *) denotes vehicles registered before 23 March 2006.]]
For vehicles registered between 1 March 2001 and 31 March 2017 charges are based on theoretical CO<sub>2</sub> emission rates per kilometre. The price structure was revised from 1 April 2013 to introduce an alternative charge for the first year (the standard cost was not changed, and remained the same as for 2001 onwards). The "first year rate" only applies in the year the vehicle was first registered and is said by the government to be designed to send "a stronger signal to the buyer about the environmental implications of their car purchase".<ref name="Vehicle tax rates"/><ref name=current_rates>{{cite web |url=http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_10012524 |title=The cost of vehicle tax for cars, motorcycles, light goods vehicles and trade licences |work=Direct Gov |access-date=2 June 2011}}</ref>

Charges as applicable from 1 April 2025:

{| class="wikitable"
|+Vehicles registered between 1 March 2001 and 31 March 2017
|-
!Car emission band
!Standard cost (£)
!Notes
|-
| Band A (up to 100&nbsp;g/km)|| rowspan="2" | 20||
|-
| Band B (101–110&nbsp;g/km)||
|-
| Band C (111–120&nbsp;g/km)|| 35 ||
|-
| Band D (121–130&nbsp;g/km)|| 160 ||
|-
| Band E (131–140&nbsp;g/km)|| 190 ||
|-
| Band F (141- 150&nbsp;g/km)|| 210 ||
|-
| Band G (151 to 165&nbsp;g/km)|| 255 ||
|-
| Band H (166 to 175&nbsp;g/km)|| 305 ||
|-
| Band I (176 to 185&nbsp;g/km)|| 335 ||
|-
| Band J (186 to 200&nbsp;g/km)|| 385 ||
|-
| Band K (201 to 225&nbsp;g/km)|| 415 ||Also vehicles with >225&nbsp;g/km registered before 23 March 2006.
|-
| Band L (226 to 255&nbsp;g/km)|| 710 ||
|-
| Band M (Over 255&nbsp;g/km)|| 735 ||
|}

====Registered after 1 April 2017====
The biggest changes from April 2017 were that hybrid vehicles were no longer rated at £0, and that cars with a retail price of £40,000 and over would pay a supplement for years 2 to 6.<ref>{{Cite web |last=Porter |first=Adrian |date=11 January 2023 |title=Car tax explained |url=https://www.which.co.uk/reviews/new-and-used-cars/article/car-tax-explained-aqnPf4D3c26Y |access-date=2023-03-04 |website=Which? |language=en}}</ref>
{| class="wikitable"
!
!First year rate
!Second year onwards rate
|-
!CO2 emissions
!Diesel cars (TC49) that meet the<br />RDE2 standard, petrol cars (TC48), 
Alternative fuel and zero emission cars
!
|-
!0g/km
|£10
| rowspan="13" |£195
|-
!1 to 50g/km
|£110
|-
!51 to 75g/km
|£130
|-
!76 to 90g/km
|£270
|-
!91 to 100g/km
|£350
|-
!101 to 110g/km
|£390
|-
!111 to 130g/km
|£440
|-
!131 to 150g/km
|£540
|-
!151 to 170g/km
|£1,360
|-
!171 to 190g/km
|£2,190
|-
!191 to 225g/km
|£3,300
|-
!226 to 255g/km
|£4,680
|-
!Over 255g/km
|£5,490
|}
For cars with a "list price" over £40,000 an additional amount – the 'expensive car supplement' – is paid at the first five annual renewals, i.e. in years 2 to 6 of the vehicle's life. At first the supplement applied to all types of car, but the [[2020 United Kingdom budget|2020 Budget]] provided an exemption for zero-emission vehicles (both new and existing), effective from 1 April 2020;<ref>{{Cite web |last=Porter |first=Adrian |date=11 March 2020 |title=Car tax changes: most new car owners will pay more tax from April |url=https://www.which.co.uk/news/article/car-tax-changes-most-new-car-owners-will-pay-more-tax-from-april-aynuo2z5Nk8i |access-date=2023-03-04 |website=Which? |language=en}}</ref><ref>{{Cite web |date=March 2020 |title=Budget 2020 |url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/871799/Budget_2020_Web_Accessible_Complete.pdf |access-date=4 March 2023 |website=GOV.UK |publisher=HM Treasury |page=94}}</ref> this exemption ended in April 2025. The supplement increases each year, and is £425 from April 2025.<ref>{{Cite web |last=Cooper |first=Eleanor |date=11 February 2025 |title=What is the luxury car tax supplement? |url=https://www.whatcar.com/advice/buying/what-is-the-expensive-car-road-tax-supplement-luxury-car-tax-explained/n27431 |access-date=2025-04-09 |website=www.whatcar.com}}</ref>

====Changes on 1 April 2025====
In November 2022, the UK government announced that reduced tax rates for zero-emission vehicles would cease on 1 April 2025, making rates the same as for those with internal combustion engines. The changes affect new and existing vehicles as follows:<ref>{{Cite web |date=21 November 2022 |title=Introduction of Vehicle Excise Duty for zero emission cars, vans and motorcycles from 2025 |url=https://www.gov.uk/government/publications/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025 |access-date=2023-03-04 |website=GOV.UK |publisher=HM Revenue & Customs |language=en}}</ref><ref>{{Cite web |date=17 November 2022 |title=Autumn Statement 2022 – what does it mean for drivers? |url=https://www.rac.co.uk/drive/news/motoring-news/autumn-statement-2022-what-does-it-mean-for-drivers/ |access-date=2023-03-04 |website=RAC |language=en}}</ref>

* Zero-emission cars first registered on or after 1 April 2017 will pay the 1–50g/km rate in their first year of registration, and the standard annual rate in subsequent years.
* The £10 reduction for alternative fuel vehicles and hybrid vehicles will be removed, bringing them also onto the standard rate.
* The exemption from the expensive car supplement was already due to end in 2025.