<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> 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>
when did road tax start in the uk
when did road tax start in the uk
1888
1888