Vehicle Excise Duty is the annual tax on vehicles driven or kept on public roads in the UK. It can be paid annually, every 6 months, or monthly by direct debit (note: paying 6-monthly or monthly costs more than the annual rate). From 1 April 2025, electric vehicles are no longer exempt and pay £10 in year 1 and £195 per year thereafter. The expensive vehicle supplement of £425/year applies to cars with an original list price over £40,000, including options, for years 2 to 6 only. After year 6 you pay only the standard rate. If your vehicle is not being driven, you can declare a Statutory Off Road Notification (SORN) to avoid VED. Historic vehicles (over 40 years old) are exempt from VED. Diesel cars not meeting RDE2 emission standards may be subject to an additional surcharge in year 1 - check your V5C logbook.