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Car buying glossary · what it means

VED (vehicle excise duty)

VED (vehicle excise duty) is the yearly road tax you must pay before driving a car on public roads.

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What VED (vehicle excise duty) means for you

VED is set by a car's first registration date. Cars registered from 1 April 2017 pay £200 a year, plus £440 in years 2 to 6 if the list price was over £40,000. Cars registered 2001 to 2017 pay by CO2 band, from £20 to £790. Cars built over 40 years ago can use the historic class for nothing.

Tax does not pass to a new keeper, so tax the car before driving it. Paying by 12 monthly Direct Debits costs 5% more. A SORN stops tax being due, but the car must then stay off public roads.

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