How road tax works
Vehicle Excise Duty (VED) — commonly called road tax — is charged annually on almost every vehicle kept or used on public roads. How much you pay depends on when your vehicle was first registered, its fuel type, and either its CO2 emissions or a flat standard rate, depending on its age.
Cars registered on or after 1 April 2017
These pay a CO2-based rate in the first year only, based on the vehicle's official emissions figure at registration. From the second year onwards, most petrol and diesel cars move to a single flat standard rate, while electric cars now also pay this standard rate from year two following the April 2025 rule change.
Cars registered before 1 April 2017
Older cars stay on the original CO2 emissions banding system (bands A to M), where the annual rate is fixed according to which band the car's official CO2 figure falls into — it doesn't change year to year the way post-2017 cars do.
The expensive car supplement
Any vehicle with a list price over £40,000 when new pays an additional annual supplement on top of the standard rate, for five years starting from the second time it's taxed. This applies regardless of fuel type, including electric vehicles.
Electric vehicles: what changed in 2025
Before April 2025, electric cars were fully exempt from VED. That exemption ended — new EVs registered from April 2025 now pay the lowest first-year rate, then the standard rate from year two, and are subject to the expensive car supplement on the same terms as petrol and diesel cars.
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Frequently asked questions
What is road tax (VED)?
Road tax, officially Vehicle Excise Duty (VED), is an annual tax that must be paid to keep most vehicles on UK roads, or to declare them off-road (SORN). The rate depends mainly on your vehicle's fuel type, CO2 emissions (for cars registered before April 2017), and list price.
Do electric cars pay road tax now?
Yes. Since April 2025, electric vehicles are no longer exempt from VED — new EVs pay the lowest first-year rate, then move to the standard rate from year two, the same as petrol and diesel cars.
What is the expensive car supplement?
Vehicles with a list price over £40,000 pay an additional annual supplement on top of the standard VED rate for five years starting from the second time the vehicle is taxed, regardless of fuel type.
How is road tax calculated for older cars?
Cars registered before 1 April 2017 are taxed on a CO2-emissions banding system (bands A to M). Cars registered on or after 1 April 2017 pay a CO2-based rate in year one, then move to a flat standard rate from year two.
Is my car currently taxed?
You can check any UK vehicle's current tax and MOT status instantly and for free using our checker — just enter the registration number.
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