Is road tax included with a lease agreement?
All car lease special offers with Nationwide Vehicle Contracts include road tax either for the duration of the contract or for 12 months. The length of time tax is covered will depend on the type of contract taken.
For contract hire or personal contract hire agreements, the funder will provide vehicle tax for the duration of the agreement, as they will remain the registered owner of the vehicle. NB: If the cost of the vehicle tax goes up during the term of the agreement, or any extended term, the customer will be liable to pay the amount of the increase.
For finance lease agreements, the finance provider will typically only provide tax for 12 months.
Who is responsible for taxing a leased vehicle?
In order to tax a vehicle, the registered owner or keeper must have the VED reminder letter (V11) or registration certificate/log book (V5C). For contract hire or personal contract hire agreements, as the finance provider is the registered owner and keeper of the vehicle, they are responsible for providing the vehicle tax for the duration of the agreement.
It’s worth noting that from October 2014, paper tax discs are no longer being issued as licence details are now stored centrally on a database. Vehicles still need to be taxed but physical tax discs will no longer be sent out by funders.