when did road tax start in the uk
Vehicle Excise Duty 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 â€” 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.[4]