UK vehicle tax (VED) explained: bands, rates and the expensive-car supplement
15 July 2026·5 min read
How VED is calculated
Vehicle Excise Duty has three parts: a first-year rate based on CO2 for a brand-new car, a flat standard rate from year two, and an annual expensive-car supplement for cars whose list price was over £40,000 when new. Rates move each April with inflation.
For used cars, only the first registration matters. After that, every car of the same age pays the same standard rate whatever its emissions, so a 2015 diesel and a 2015 electric car now pay the same each year.
The electric shift
From April 2025, zero-emission cars pay the first-year rate and the standard rate like any other car. The old £0 band is gone and the expensive-car supplement now applies to EVs over £40,000 as well. What is left for an EV is a low first-year rate when new. From year two it matches a petrol car.
Taxing without the paper
Since 2014, tax does not transfer with a car. The seller signs it off and the buyer must tax it straight away, or enforcement starts to count. Direct Debit is the usual way to pay, and tax stays with the vehicle, not the owner.
Roadworthy's check shows tax status and MOT history before you commit. Both are free to look up and answer the two questions every buyer should ask.