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VED stands for vehicle exercise duty or road tax. Any car used on the road is required by
law to display a tax disc. Buying a new car also requires the purchase of a road tax disc
which is more commonly known as First Year tax or Showroom tax, whereas with a used car it is
VED or road tax. A tax disc must be renewed annually or every six months.
From 1st March 2001 the annual car tax (VED) rates are determined by a car's CO2 emissions and
type of fuel used. This information can be found on the car's log book or V5 document. If your car
was registered before the 1st of March 2001 then the road tax is based only on the engine size, with
one rate for the engine sizes up to and including 1549cc and one for engines over 1549cc. This info
can also be found on the log book.