Ownership

UK Road Tax (VED) Rates Explained

How Vehicle Excise Duty works for petrol, diesel, hybrid, and electric cars after April 2017 rules.

Updated 2026-06-14

Key takeaways

First-year VED depends on official CO₂; later years use a flat standard rate.
Cars over £40,000 list price pay a luxury supplement for five years.
Zero-emission cars currently pay £0 standard rate but rules change — verify on GOV.UK.
Tax is not transferable when you sell the car.

How VED is calculated

Cars registered after April 2017 pay a first-year rate based on CO₂ emissions, then a flat standard rate from year two. Premium models over £40,000 pay an extra supplement for five years.

Check the exact band on GOV.UK before buying — a small engine on paper is not always low CO₂.

Electric and hybrid differences

Pure EVs pay £0 standard rate today. Plug-in hybrids pay the petrol/diesel standard rate unless they qualify for a zero first-year band.

PHEV buyers should model fuel and electricity costs together — low VED does not mean low running cost.

Paying and penalties

VED is tied to the vehicle registration, not the owner. You cannot transfer unused months when you sell.

Driving untaxed risks an £80 fine (reduced if paid quickly), clamping, and impound.

Buying used — what carries over

The remaining luxury supplement stays with the car until the five-year window ends. Ask the seller for the V5C logbook and confirm tax status online before collection.

SORN is required if the car is off-road.