What is a car tax band?

A car tax band, also known as a vehicle excise duty (VED) band, is a system used to determine the amount of road tax to be payable on vehicles banded into one of the car tax bands defined by the car's CO2 emissions. It primarily applies to vehicles registered after March 2001 to April 2017. Those cars producing low or zero emissions (such as electric cars) are typically taxed at the lowest rate. Conversely, those vehicles with high emissions (such as older, less efficient petrol and diesel engines) are taxed at the highest rate.