Vehicles (Excise) Act 1971 (Repealed 1.9.1994)

16 Trade licences. U.K.

(1) If a motor trader or a vehicle tester applies in the prescribed manner to the Secretary of State to take out a licence under this section (in this Act referred to as a “trade licence”)—

(i) in the case of a motor trader, for all mechanically propelled vehicles which are from time to time temporarily in his possession in the course of his business as a motor trader . . . F1 ; or

(ii) in the case of a vehicle tester, for all mechanically propelled vehicles which are from time to time submitted to him for testing in the course of his business as a vehicle tester; or

(iii) in the case of a motor trader who is a manufacturer of mechanically propelled vehicles, for all vehicles kept and used by him solely for purposes of conducting research and development in the course of his business as such a manufacturer [F2 and all vehicles which are from time to time submitted to him by other manufacturers for testing on roads in the course of that business],

the Secretary of State may, subject to the prescribed conditions, issue to him a trade licence on payment of duty at the rate applicable to the licence in accordance with the following provisions of this section:

Provided that the holder of a trade licence shall not be entitled by virtue of that licence—

(a) to use more than one mechanically propelled vehicle at any one time, . . . F3 ; or

(b) to use any vehicle for any purpose other than such purposes as may be prescribed; or

(c) [F4 except in such circumstances as may be prescribed] to keep any vehicle on a road if it is not being used thereon.

[F5 (1A) Subsection (1) above has effect in relation to an application made by a person who satisfies the Secretary of State that he intends to commence business as a motor trader or vehicle tester as it has effect in relation to an application made by a motor trader or vehicle tester.]

(2) Regulations shall be made under this section prescribing the conditions subject to which trade licences are to be issued and the purposes for which the holder of a trade licence may use a vehicle under the licence.

(3) The purposes which may be prescribed as those for which the holder of a trade licence may use a vehicle under the licence shall not include the conveyance of goods or burden of any description other than—

(a) a load which is carried solely for the purpose of testing or demonstrating the vehicle or any of its accessories or equipment and which is returned to the place of loading without having been removed from the vehicle except for such purpose or in the case of accident; or

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6

[F7 (bb) in the case of a vehicle which is being delivered or collected, a load consisting of another vehicle used or to be used for travel from or to the place of delivery or collection; or]

(c) any load built in as part of the vehicle or permanently attached thereto; or

(d) a load consisting of parts, accessories or equipment designed to be fitted to the vehicle and of tools for so fitting them; or

(e) a load consisting of a trailer [F8 other than a trailer which is for the time being a disabled vehicle];

and, for the purposes of this subsection, where a vehicle is so constructed that a trailer may by partial superimposition be attached to the vehicle in such a manner as to cause a substantial part of the weight of the trailer to be borne by the vehicle, the vehicle and the trailer shall be deemed to constitute a single vehicle.

(4) [F9 Subject to subsections (4A) and (4B) below, a trade licence] may be taken out—

(a) for a period of twelve months; or

[F10 (b) for a period of six months];

F11 . . .

[F12 (4A) A trade licence taken out by a person who is not a motor trader or vehicle tester (having satisfied the Secretary of State as mentioned in subsection (1A) above) shall be for a period of six months only.

(4B) The Secretary of State may require that a trade licence taken out by a motor trader or vehicle tester who does not hold any existing trade licence shall be for a period of six months only.]

(5) The rate of duty applicable to a trade licence taken out for a period of twelve months shall be [F13 the rate mentioned in subsection (5A)(a) below] or, if the licence is to be used only for vehicles to which Schedule 1 to this Act relates, [F14 the rate mentioned in subsection (5A)(b) below]; and the rate of duty applicable to a licence taken out for a period of [F15 six months] shall be [F15 eleven twentieths] of the rate applicable to the corresponding trade licence taken out for a period of twelve months, any fraction of 5p being treated as 5p if it exceeds 2·5p but otherwise being disregarded.

[F16 (5A) The rates referred to in subsection (5) above are—

(a) the annual rate applicable to a vehicle falling within paragraph 2 of Part II of Schedule 5 to this Act in relation to a licence taken out when the trade licence is taken out;

(b) the annual rate applicable to a vehicle falling within paragraph 3 of Part II of Schedule 1 to this Act in relation to a licence taken out when the trade licence is taken out.]

(6) Nothing in this section shall operate to prevent a person entitled to take out a trade licence from holding two or more trade licences.

(7) If any person holding a trade licence or trade licences issued under this section uses on a public road by virtue of that licence or those licences—

(i) a greater number of vehicles at any one time than he is authorised to use by virtue of that licence or those licences; or

(ii) any vehicle for any purpose other than such purposes as may have been prescribed under subsection (2) above;

or if that person uses that licence or any of those licences for the purpose of keeping on a road [F17 in any circumstances other than such circumstances as may have been prescribed under paragraph (c) of the proviso to subsection (1) above] a vehicle which is not being used on that road, he shall be liable to the greater of the following penalties, namely—

(a) an excise penalty of £50; or

(b) an excise penalty equal to five times the amount of the duty chargeable in respect of the vehicle or vehicles.

The amount of the duty chargeable in respect of a vehicle shall be calculated for the purposes of this subsection in the same manner as it is calculated for the purposes of section 8 of this Act by virtue of subsection (3) thereof.

(8) In this section—

• [F18 “disabled vehicle” includes a vehicle which has been abandoned or is scrap;]

• “motor trader” [F19 means—

(a) a manufacturer or repairer of, or dealer in, mechanically propelled vehicles, or

(b) any person not falling within paragraph (a) above who carries on a business of such description as may be prescribed;

and a person shall be treated for the purposes of paragraph (a) above] as a dealer in such vehicles if he carries on a business consisting wholly or mainly of collecting and delivering mechanically propelled vehicles, and not including any other activities except activities as a manufacturer or repairer of, or dealer in, such vehicles;

• “vehicle tester” means a person, other than a motor trader, who regularly in the course of his business engages in the testing on roads of mechanically propelled vehicles belonging to other persons;and

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20

Textual Amendments

F1 Words repealed by Finance Act 1987 (c. 16, SIF 107:2), ss. 2(5)(7), 72, Sch. 1 Pt. II para. 5(a), Sch. 16 Pt. I Note 1

F2 Words inserted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 para. 4(2)(a)

F3 Words repealed by Finance Act 1987 (c. 16, SIF 107:2), ss. 2, 72, Sch. 1 Pt. II para. 5(b), Sch. 16 Pt. I Note I

F4 Words inserted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 para. 4(2)(b)

F5 S. 16(1A) inserted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 para. 4(3)

F6 S. 16(3)(b) repealed by Finance Act 1987 (c. 16, SIF 107:2), ss. 2, 72, Sch. 1 Pt. II para. 5(a), Sch. 16 Pt. I Note 1

F7 S. 16(3)(bb) inserted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7) , Sch. 2 para. 4(4)

F8 Words added by Finance Act 1987 (c. 16, SIF 107:2), s. 2, Sch. 1 Pt. II para. 5(c) (for the purposes referred to in s. 2(5))

F9 Words substituted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 Pt. I para. 4(5)(a)

F10 S. 16(4)(b) substituted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 Pt. I para. 4(5)(b)

F11 Words in s. 16(4) repealed (3.5.1994) by 1994 c. 9, ss. 5, 258, Sch. 2 para. 7, Sch. 26 Pt. I(3)

F12 S. 16(4A)(4B) inserted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 Pt. I para. 4(6)

F13 Words in s. 16(5) substituted (27.7.1993 with application in relation to licences taken out after 16.3.1993) by virtue of 1993 c. 34, s. 19(2)(a)(4)

F14 Words in s. 16(5) substituted (27.7.1993 with application in relation to licences taken out after 16.3.1993) by virtue of 1993 c. 34, s. 19(2)(b)(4)

F15 Words substituted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 Pt. I para. 4(7)(a)

F16 S. 16(5A) inserted (27.7.1993 with application in relation to licences taken out after 16.3.1993) by 1993 c. 34, s. 19(3)(4)

F17 Words inserted by Finance Act 1987 (c. 16, SIF 107:2), s. 2, Sch. 1 Pt. III para. 14

F18 Definition inserted by Finance Act 1984 (c. 43, SIF 107:2), s. 4(4)(b)

F19 Words substituted by Finance Act 1986 (c. 41, SIF 107:2), s. 3(7), Sch. 2 Pt. I para. 4(8)

F20 Definition repealed by Finance Act 1987 (c. 16, SIF 107:2), ss. 2, 72, Sch. 1 Pt. II para. 5(d), Sch. 16 Pt. I Note 1

Modifications etc. (not altering text)

C1 Criminal Justice Act 1982 (c. 48, SIF 39:1), ss. 38 (increase of fines) and 46 (substitution of references to levels on the standard scale) apply (E.W.)

C2 Criminal Procedure (Scotland) Act 1975 (c. 21, SIF 39:1), ss. 289F (increase of fines) and 289G (substitution of references to levels on the standard scale) apply (S.)