1. What is Vehicle Excise Duty (VED)?

Vehicle Excise Duty (VED), often called road tax, is an annual tax levied on vehicles registered in the UK. The amount payable depends primarily on the vehicle's CO2 emissions, fuel type, and list price.

2. How VED is Calculated

VED calculation has two components:

• First Year Rate: Based on CO2 emissions (higher for more polluting vehicles)
• Standard Rate: Fixed fee for subsequent years, with premium supplement for expensive cars

Electric vehicles currently pay £0 VED, while alternative fuel vehicles get a £15 discount.

3. Current VED Rates (2023)

First Year Rates:

• 0g/km: £0
• 1-50g/km: £10 (petrol/diesel) or £0 (alternative fuel)
• 51-75g/km: £25 or £15
• 76-90g/km: £120 or £95
• Over 255g/km: £2,250 or £2,200

Standard Rate: £180 (petrol/diesel) or £165 (alternative fuel) plus £390 premium supplement for cars over £40,000.

4. Using the Calculator

Instructions: Enter your vehicle's CO2 emissions (g/km), select fuel type, indicate if this is first year registration, and optionally enter list price if over £40,000.

5. Frequently Asked Questions (FAQ)

Q1: When did the current VED system start?
A: The current system was introduced in April 2017, with minor adjustments since.

Q2: Are there exemptions from VED?
A: Yes - vehicles used by disabled people, historic vehicles (over 40 years old), and electric vehicles (until 2025).

Q3: How is the premium supplement calculated?
A: The £390 supplement applies for 5 years from the second time the vehicle is taxed, for cars with a list price over £40,000.

Q4: What counts as an alternative fuel vehicle?
A: Hybrids, bioethanol, and LPG vehicles qualify for the alternative fuel discount.

Q5: Where can I find my vehicle's CO2 emissions?
A: This information is in your V5C registration certificate or can be found online using your registration number.