All cars pay the same flat rate from the second year and beyond, but cars with a list price of more than £40,000 pay a premium, called ‘expensive car supplement’, from years two to six of registration.
This additional cost does not apply to electric vehicles, and this exemption is set to be in place until 31 March 2025.
Other factors that can affect how much you pay include the type of car you own, and where it was first registered.
Is my car exempt from VED?
Some cars are exempt from the VED tax. Perhaps most notably, drivers of electric cars do not need to pay. This also includes cars powered by a hydrogen fuel cell. However, drivers of hybrid vehicles must pay.
Historic vehicles – that’s cars which were made before 1 January 1983 – are also not required to pay VED, so, luckily, your Ferrari 250 GTO is safe to drive on the road without further pennies.
Cars used to transport disabled passengers – referred to as disabled passenger vehicles also do not have to pay VED. You can also claim a disability exemption if you’re disabled but you drive your car, but this can only be used on one vehicle at a time.
VED also does not apply to mobility vehicles and powered wheelchairs, so long as they have a maximum speed of 8mph on the road and are limited to 4mph on pavements.
Outside of standard passenger cars, vehicles that are used for agriculture, horticulture and forestry are also VED exempt. This includes tractors, light agricultural vehicles and ‘limited use’ vehicles. These aren’t allowed to drive more than 1.5km on a public road.
Steam vehicles are also exempt. Great news for the Doble Model E owners club.
If you own a car but you don’t drive it on public roads, then you’re also exempt, although you’ll have to declare it to the DVLA. This is called a Statutory Off Road Notification, or SORN, and you can declare it here.