Vehicle Excise Duty (VED)

Also known as Road Tax or Road Fund Licence.

An annual tax applicable to every motor vehicle used on a public road in the UK. The duty is assessed on a sliding scale depending on the amount of carbon dioxide emissions a car produces and the fuel that it uses. This can range from £40 a year for petrol cars with emissions of between 101-120 g/km to £210 for a car that has emissions over 225 g/km. Diesel cars are slightly more expensive to tax than a petrol car with the same emission figures (about £10), whilst alternative fuel cars are slightly cheaper. Any car with 100 g or less CO2 /km will receive their tax disc for free.

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