Taxes in Europe Database v2
Vehicle Excise and Registration Act 1994, as amended by subsequent finance acts.
The registered keeper of a vehicle (who is not necessarily the legal owner).
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.
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.
Vehicle Excise Duty bands and rates for cars registered on or after March 2001 (graduated VED)
At the point that the registered keeper's vehicle license expires.
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.