Question 1

How is UK vehicle tax (VED) calculated?

Accepted Answer

UK Vehicle Excise Duty (VED) depends on the vehicle's registration date, CO2 emissions, fuel type, and original list price. Cars registered from 1 April 2017 pay a standard annual rate after the first-year CO2-based rate.

Question 2

What is the luxury car supplement for vehicles over £40,000?

Accepted Answer

Vehicles with a manufacturer list price over £40,000 when new pay an additional annual supplement (£410/yr) for five years starting from the second tax renewal.

Question 3

Do electric vehicles pay road tax?

Accepted Answer

Under UK legislation, electric vehicles (EVs) are subject to standard annual VED rates from April 2025, and new EVs over £40k will become subject to the expensive car supplement.