Definition
An annual tax levied by the UK government on vehicles, based on factors such as CO2 emissions or list price. For leased cars, the leasing company typically pays this initially, but contracts often stipulate the lessee must cover any increases during the lease term.
Why it matters (in Poovi’s context)
Lessee responsibility for changes in VED, even those announced in advance, needs careful attention in lease contracts to avoid unexpected costs.
Key properties or components
- Government tax on vehicles
- Initial payment usually by leasing company
- Lessee may be liable for changes/increases
Contradictions or debates
None.