A VED band is a classification system that determines how much Vehicle Excise Duty (road tax) you pay for your car in the UK. Your vehicle’s VED band depends on its CO2 emissions, fuel type, and when it was first registered. The lower your car’s emissions, the lower your annual road tax bill.
Understanding Vehicle Excise Duty Bands
Vehicle Excise Duty bands exist to encourage drivers to choose cleaner, more environmentally friendly vehicles. The system works by charging different rates based on how much carbon dioxide your car produces per kilometre driven.
The government uses these bands to:
- Reduce harmful emissions from road transport
- Generate revenue for road maintenance and infrastructure
- Incentivise the purchase of electric and hybrid vehicles
- Fund environmental initiatives
How VED Bands Are Determined
Your car’s VED band classification depends on three key factors:
CO2 Emissions Rating
The most important factor is your vehicle’s official CO2 emissions figure. This is measured in grams per kilometre (g/km) and appears on your vehicle’s registration documents. Lower emissions mean a lower VED band and cheaper road tax.
Fuel Type
The type of fuel your car uses affects which band it falls into:
- Petrol engines
- Diesel engines (often higher rates due to additional pollutants)
- Alternative fuels (LPG, CNG)
- Electric vehicles (currently exempt)
- Hybrid vehicles (reduced rates)
First Registration Date
When your car was first registered determines which VED system applies:
- Cars registered before 1 March 2001
- Cars registered between 1 March 2001 and 31 March 2017
- Cars registered from 1 April 2017 onwards
Current VED Band System (2017 Onwards)
For cars first registered from 1 April 2017, the UK uses a simplified system with three main categories:
First Year Rate
You pay based on your car’s CO2 emissions band for the first year only. This ranges from £0 for zero-emission vehicles to £2,745 for the highest-polluting cars.
| CO2 Emissions (g/km) | First Year Rate 2024-25 |
|---|---|
| 0 | £0 |
| 1-50 | £10 |
| 51-75 | £25 |
| 76-90 | £120 |
| 91-100 | £145 |
| 101-110 | £170 |
| 111-130 | £195 |
| 131-150 | £230 |
| 151-170 | £270 |
| 171-190 | £310 |
| 191-225 | £870 |
| 226-255 | £1,395 |
| Over 255 | £2,745 |
Standard Rate
From the second year onwards, most cars pay a flat standard rate of £190 annually (2024-25 rates), regardless of emissions. Electric vehicles remain exempt.
Premium Rate
Cars with a list price over £40,000 when new pay an additional £390 annually on top of the standard rate. This premium rate applies for five years after the first year of registration.
Legacy VED Band Systems
Pre-2001 Vehicles
Cars registered before 1 March 2001 pay a flat rate based on engine size:
- Under 1549cc: £180 annually
- Over 1549cc: £295 annually
2001-2017 System
Vehicles registered between these dates use the original band system (A-M) based purely on CO2 emissions:
| Band | CO2 Emissions (g/km) | Annual Rate (Petrol) | Annual Rate (Diesel) |
|---|---|---|---|
| A | Up to 100 | £0 | £0 |
| B | 101-110 | £20 | £35 |
| C | 111-120 | £35 | £35 |
| D | 121-130 | £145 | £170 |
| E | 131-140 | £170 | £195 |
| F | 141-150 | £195 | £220 |
| G | 151-165 | £220 | £245 |
| H | 166-175 | £270 | £295 |
| I | 176-185 | £295 | £320 |
| J | 186-200 | £320 | £345 |
| K | 201-225 | £345 | £370 |
| L | 226-255 | £605 | £630 |
| M | Over 255 | £630 | £655 |
Finding Your Car’s VED Band
You can find your vehicle’s VED band information through several methods:
Check Your V5C Registration Document
Your V5C (log book) shows your car’s CO2 emissions figure. Use this to determine which band your vehicle falls into based on the tables above.
Online VED Calculator
The DVLA’s online vehicle tax service shows exactly how much you need to pay when you tax your vehicle.
Vehicle Registration Check
Use the government’s vehicle information service to find detailed information about any UK-registered vehicle using just the registration number.
Special Considerations and Exemptions
Electric Vehicles
Pure electric vehicles (BEVs) currently pay £0 VED. However, from April 2025, electric cars will move to the standard rate system, meaning they’ll pay the £190 annual charge from their second year.
Hybrid Vehicles
Hybrid cars benefit from lower VED rates due to their reduced emissions. Plug-in hybrids with very low CO2 emissions (typically under 50g/km) often qualify for the lowest bands.
Alternative Fuel Vehicles
Cars running on LPG, CNG, or other alternative fuels typically receive a £10 annual discount compared to equivalent petrol vehicles.
Disabled Drivers
Vehicles used by disabled people may qualify for exemption from VED. This includes vehicles registered in the disabled person’s name or their nominated driver’s name.
Historic Vehicles
Cars over 40 years old automatically become exempt from VED. You still need to apply for exemption and renew it annually, but no payment is required.
Impact on Vehicle Choice
Understanding VED bands can significantly affect your car buying decisions:
New Car Buyers
For new cars, focus on CO2 emissions to minimise first-year charges. Remember that cars over £40,000 face five years of premium rate payments.
Used Car Buyers
Check which VED system applies to your chosen vehicle. Cars from 2001-2017 with very low emissions can offer ongoing savings, whilst high-emission vehicles from this period face substantial annual costs.
Fleet Operators
VED bands significantly impact total cost of ownership for business fleets. Many companies now prioritise low-emission vehicles to control ongoing tax costs.
Future Changes to VED Bands
The government regularly reviews VED rates and structure. Key upcoming changes include:
- Electric vehicle exemption ending in April 2025
- Potential introduction of road pricing systems
- Possible adjustments to encourage uptake of newer emission standards
Stay informed about changes by checking the government’s VED guidance regularly.
Conclusion
VED bands determine your annual road tax based on your car’s emissions, fuel type, and registration date. The current system encourages cleaner vehicle choices through lower taxes for low-emission cars, whilst generating revenue for road infrastructure.
Understanding your vehicle’s VED band helps you budget accurately for ownership costs and make informed decisions when buying your next car. With electric vehicle exemptions ending soon and ongoing policy changes, staying informed about VED bands becomes increasingly important for all UK drivers.
Check your vehicle’s specific band using official government resources and factor VED costs into your total ownership calculations. This knowledge will help you make better financial decisions and understand the true cost of running your vehicle.
Frequently Asked Questions
How do I find out what VED band my car is in?
Check your V5C registration document for the CO2 emissions figure, then refer to the appropriate table based on when your car was first registered. You can also use the DVLA’s online vehicle tax service or vehicle information checker.
Can my car’s VED band change?
No, your car’s VED band is fixed based on its original CO2 emissions rating and registration date. However, VED rates within bands can change annually when the government reviews taxation levels.
Do I pay VED on electric cars?
Currently, pure electric vehicles pay £0 VED. However, from April 2025, electric cars will pay the standard annual rate (currently £190) from their second year onwards.
What happens if I buy a car over £40,000?
You’ll pay the premium rate (additional £390 annually) on top of standard VED for five years after the first year of registration. This applies even if you buy the car second-hand.
Are there any VED exemptions available?
Yes, exemptions exist for disabled drivers, historic vehicles over 40 years old, and certain specialist vehicles. You must apply for exemption even if no payment is required.