Industry jargon

Vehicle Excise Duty

Also called: VED, vehicle tax Vehicle Excise Duty, or VED, is the UK tax charged on vehicles according to the rules that apply to their type and registration date. Electric, zero and low-emission vehicles became liable for VED from 1 April 2025. For 2026/27, a zero-emission car first registered on or after 1 April 2025 pays £10 in its first year and then the £200 standard rate. Other registration cohorts have different treatment. VED rates change, so a glossary definition should explain the tax and date any figures rather than presenting a current rate as permanent. The government has also announced a separate mileage-based Electric Vehicle Excise Duty from April 2028.