Is road fund license included in a lease?

One of the most common questions we get at All Car Leasing is whether or not road fund license is included in a lease or not. In this article, we give some clear information and answer to this question for all of our customers and visitors so that there will be no more confusion.

What is road fund license?

Road fund license, also known as vehicle excise duty or colloquially as road tax is a taxation imposed by the government on all roadworthy motor vehicles. The cost of road fund license is based on the emissions the car puts out.

For more information on what road tax pays for see this guide

Is road fund license included in a lease?

In short, yes. Road fund license is included in practically every single lease for both business and personal customers. Not having to pay road tax every year is one of the biggest benefits of car leasing and essentially removes one household bill entirely every year while you lease.

Is road fund license ever not included in a lease?

Yes. Road fund license may not be included in an operating lease a type of lease which extremely rare and will be explained to you before the contracts are set out.

Why is road fund license included in a lease?

If you’re wondering why road fund license is included with a lease it’s because of the ownership issue (or lack thereof) of the vehicle. Paying for road fund license for a vehicle is the responsibility of the owner. As the vehicle is owned by the finance company or dealership, and not you, that is why you do not need to pay or arrange the road fund license bill.

Read more about who is the owner of a lease vehicle here

What are the benefits of this?

First of all, the annual cost to you is avoided completely and it’s one less thing you need to do every year. You will never be stung for completely forgetting about it or having a situation where you have no funds to pay for it at that time.

How can I be sure the tax has been sorted?

If you want to double-check that road fund license is included in your lease then use the Government’s vehicle tax checker here.