VED
Vehicle Excise Duty is the official name for UK road tax — the annual charge for keeping or using a vehicle on public roads. New cars pay a CO2-based first-year rate (from £10 to £5,690 in 2026/27), then a flat £200 a year from year two. Cars costing over £40,000 (£50,000 for EVs) pay an extra £440 a year for five years. Electric cars have paid VED since April 2025.
Example
A new petrol car emitting 130 g/km CO2 pays £455 in its first year, then £200 a year after that.