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42(1)This paragraph applies where paragraph 41 above does not apply and—
(a)a vehicle licence is taken out for a vehicle on or after 1st July 1995 and before 1st July 1996,
(b)the licence is the first vehicle licence to be taken out for the vehicle on or after 1st July 1995,
(c)apart from Part III of this Schedule, the annual rate of vehicle excise duty applicable to the vehicle would be found under any of the provisions falling within sub-paragraph (3) below, and
(d)the new amount of duty exceeds the old amount of duty by more than £1,000.
(2)In such a case the amount of vehicle excise duty to be paid on the licence shall be an amount equal to £1,000 plus the old amount of duty.
(3)The provisions falling within this sub-paragraph are—
(a)paragraph 8(1) and (2)(b) of Schedule 1 to the 1994 Act;
(b)paragraph 8(1) and (2)(c) of that Schedule;
(c)paragraph 8(1) and (2)(d) of that Schedule;
(d)paragraph 12(2) of that Schedule;
(e)paragraph 12(3) to (5) of that Schedule.
(4)For the purposes of this paragraph—
(a)the new amount of duty is the amount of vehicle excise duty payable on the licence apart from this paragraph;
(b)the old amount of duty is the amount of vehicle excise duty that would be payable on the licence if Part III of this Schedule had not been enacted.
(5)This paragraph shall be construed in accordance with the 1994 Act.
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