<P> Vehicle Excise Duty (VED) (also known as "vehicle tax", "car tax" or "road tax", and formerly as a "tax disc") is a tax that is levied as an excise duty and which must be paid for most types of vehicles which are to be used (or parked) on public roads in the United Kingdom . Registered vehicles that are not being used or parked on public roads and which has been taxed since 31 January 1998, must be covered by a Statutory Off Road Notification (SORN) to avoid VED . In 2016, VED generated approximately £ 6 billion for the Exchequer . </P> <P> A vehicle tax was first introduced in Britain in 1888 . In 1920, an excise duty was introduced that was specifically applied to motor vehicles; initially it was hypothecated (ring - fenced or earmarked) for road construction and paid directly into a special Road Fund . After 1937, this reservation of vehicle revenue for roads was ended, and instead the revenue was paid into the Consolidated Fund--the general pot of money held by government . Since then, maintenance of the UK road network has been funded out of general taxation, of which VED is a part . </P> <P> VED across the United Kingdom is collected and enforced by the Driver and Vehicle Licensing Agency (DVLA). Until 2014, VED in Northern Ireland was collected by the Driver and Vehicle Agency there; responsibility has since been transferred to the DVLA . </P>

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