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Generic Tax Name Motor vehicles tax - Vehicle excise duty
Tax name in the national language Vehicle excise duty (VED)
Tax name in English Vehicle excise duty (VED)
Member State UK-United Kingdom
Tax in force since 1994/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Vehicle Excise and Registration Act 1994, as amended by subsequent finance acts.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

UK.

 
Taxpayers

The registered keeper of a vehicle (who is not necessarily the legal owner).

 
Tax object and basis of assessment

Passenger cars first registered on or after 1 March 2001 are liable to duty according to CO2 emissions of the car. Since April 2010, First Year Rates (FYR) are payable on the first registration of a new car. In the second and subsequent years, the standard rate of VED applies. Passenger cars and light goods vehicles (vans) first registered before 1 March 2001, and motorcycles and tricycles are liable to duty according to engine size. Light goods vehicles (vans) first registered on or after 1 March 2001 and weighing no more than 3.5 tonnes pay VED at a flat rate. VED treatment of Heavy Goods Vehicles (HGVs) is subject to revenue weight and number of axles and buses by seating capacity. There is also a distinction between articulated and rigid goods vehicles.

 
Deductions, Allowances, Credits, Exemptions

Exemptions:

There are exemptions for emergency vehicles (including police, fire and ambulance services), vehicles used by or on behalf of disabled persons, vehicles used for the purpose of agriculture, forestry or horticulture for a specified short distance on public roads, agricultural machines, electric vehicles, steam vehicles, snow ploughs, gritting vehicles and mowing machines. There is a rolling 40-year exemption for classic vehicles legislated for on a yearly basis to include the additional cohort of eligible vehicles.

 
Rate(s) Structure
  • For passenger cars and light goods vehicles first registered before 1 March 2001 and with an engine capacity of 1549 cc or below the rate is GBP 140 a year in 2013/14. For those with an engine capacity over 1549 cc the rate is GBP 225 in 2013/14. Passenger cars first registered on or after 1 March 2001 pay VED according to their CO2 in thirteen bands varying from GBP 0 to GBP 490 in 2013/14. FYR on new cars vary from GBP 0 to GBP 1,065.

 

Vehicle Excise Duty bands and rates for cars registered on or after March 2001 (graduated VED) 

VED band CO2 emissions (g/km) Standard Rates First Year Rates
2013/14 2014/15 2013/14 2014/15
A Up to 100 0 0 £0 £0
B 101-110 £20 £20 £0 £0
C 111-120 £30 £30 £0 £0
D 121-130 £105 £110 £0 £0
E 131-140 £125 £130 £125 £130
F 141-150 £140 £145 £140 £145
G 151-165 £175 £180 £175 £180
H 166-175 £200 £205 £285 £290
I 176-185 £220 £225 £335 £345
J 186-200 £260 £265 £475 £485
K1 201-225 £280 £285 £620 £635
L 226-255 £475 £485 £840 £860
M Over 255 £490 £500 £1,065 £1,090
1Includes cars emitting over 225g/km registered before 23 March 2006     
Alternative fuel discount 2010-11 onwards £10 for all cars     
2012/13 rates take effect from 1st April 2012     
  • Light goods vehicles first registered on or after 1 March 2001 pay GBP 225.
  • Motor cycles pay GBP 17, GBP 38, GBP 58 and GBP 80 a year according to engine capacity.
  • Motorised tricycles GBP 17 and GBP 80 a year according to engine capacity.
  • Rates of duty on heavy goods vehicles rise on a scale from GBP 80 up to GBP 850 a year. 
  • Vehicles used for carrying or drawing exceptional loads pay a rate of duty of GBP 1,585.
  • Rates of duty for buses are in four bands according to seating capacity, rising from GBP 165 to GBP 500. For reduced pollution buses there is a flat rate of duty of GBP 165 a year.
  • Rates of duty for recovery vehicles range from GBP 165 to GBP 410 according to revenue weight.
  • There is a flat rate of duty for haulage vehicles of GBP 350.
  • Showman's goods and showman's haulage vehicles, mobile cranes, works trucks, digging machines and road rollers pay a concessionary rate of duty of GBP 165 a year.
  • Combined transport vehicles used to transport goods between EU member states where the vehicle is itself transported by rail to the nearest railheads play a flat rate of GBP 10 a year.
 
Tax due date

At the point that the registered keeper's vehicle license expires.

 
Tax collector

VED is collected by the Driver and Vehicle Licensing Agency (DVLA). The duty is payable by the person keeping the vehicle and the revenue is paid to the Exchequer. In October 2014 the paper form of the vehicle licence was abolished but applications for licences are still made directly through DVLA or by the Post Office. Applicants can now pay by monthly, six monthly or yearly direct debit payments.

 
Special features

 
Economic function







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Environmental taxes



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Tax revenue
ESA95 code d29ba + d59da

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 5,873.00 GBP 0.35
2011 5,820.00 GBP 0.36
2010 5,840.00 GBP 0.38
2009 5,630.00 GBP 0.38
2008 5,524.00 GBP 0.36
2007 5,384.00 GBP 0.36
2006 5,010.00 GBP 0.36
2005 4,762.00 GBP 0.36
2004 4,763.00 GBP 0.38
2003 4,720.00 GBP 0.40
2002 4,294.00 GBP 0.38
2001 4,102.00 GBP 0.38
2000 4,606.00 GBP 0.45

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