Vehicle Excise Duty discounts in rural areas

Vehicle excise duty (road tax) is an annual fixed tax on vehicle ownership. From 1985 to 1991, the rate on private vehicles was £100, and it has since been increased in successive Budgets to its current level of £155 for vehicles over 1,100cc. From 1 June 1999, vehicles of 1,100cc and below are liable for a reduction of £55. In response to the recent fuel protests, recent press speculation has suggested that motorists in rural areas could be offered a discount on their vehicle excise duty (VED). One of the frequent objections to the high tax rate on road fuels in the UK is the effect it has on certain groups of the population. The idea behind cutting VED for those living in rural areas is to compensate one of the groups that we might be concerned about.