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