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Vehicle Excise Duty
Vehicle Excise Duty (also VED, vehicle tax, car tax and road tax) is a vehicle road use tax levied as an excise duty which must be paid for most types of vehicle which are to be used (or parked) on the public roads in the United Kingdom . A vehicle licence (tax disc) is given as proof of having paid the tax, and should be displayed on the vehicle.
The amount of Vehicle Excise Duty (road fund licence) payable on new cars varies depending on the level of carbon dioxide (CO2) emissions produced by the vehicle. CO2 emissions are measured in grammes per kilometre (g/km) and divided into 13 charging bands for petrol and diesel vehicles, as shown in the table below.
From 1 April 2011, VED rates will increase in line with RPI inflation and Heavy Goods Vehicle rates will be frozen.
| Vehicle Excise Duty bands and rates for cars registered on or after March 2001 (graduated VED) | |||
| VED BAND | CO2 emissions (g/km) |
2011-12 2 | |
| Standard Rate 1 | First Year Rate 1 | ||
| A | Up to 100 |
£0 | £0 |
| B | 101-110 |
£20 | £0 |
| C | 111-120 |
£30 | £0 |
| D | 121-130 | £95 | £0 |
| E | 131-140 | £115 | £115 |
| F | 141-150 | £130 | £130 |
| G | 151-165 | £165 | £165 |
| H | 166-175 | £190 | £265 |
| I | 176-185 | £210 | £315 |
| J | 186-200 | £245 | £445 |
| K3 | 201-225 | £260 | £580 |
| L | 226-255 | £445 | £790 |
| M | Over 255 |
£460 | £1000 |
1 Alternative fuel discount: 2010-11 onwards £10 for all cars
2 2011-12 rate is applicable until 31 March 2012
3 Includes cars emitting over 225g/km registered before 23 March 2006