What is road tax?

Road tax or Vehicle Excise Duty (VED) is a periodic tax payable on vehicles that use public roads. The amount you pay depends on your vehicle's CO2 emissions - the lower the emissions, the lower the tax.

In 2017 new rules were introduced for cars registered after 1 April 2017. The first year’s VED is still based on a vehicle’s CO2 emissions, but cars with 0g/km CO2 emissions – electric and hydrogen vehicles – are exempt from paying tax. So now you can buy a nearly new or second-hand car and avoid paying tax for as long as you drive it.