On and after such day as the Secretary of State may by order appoint this Act shall have effect as if for section 13 there were substituted—

“13 Trade licences: duration and amount of duty.

(1)

A trade licence may be taken out—

(a)

for a period of twelve months, or

(b)

for a period of six months.

(2)

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 section 11(1)(b)) may be taken out only for a period of six months.

(3)

The Secretary of State may require that a trade licence taken out by a motor trader or vehicle tester who does not hold an existing trade licence may be taken out only for a period of six months.

(4)

The rate of duty applicable to a trade licence taken out for a period of twelve months is—

(a)

the annual rate currently applicable to a vehicle under sub-paragraph (1)(c) of paragraph 2 of Schedule 1 if the licence is to be used only for vehicles to which that paragraph applies, and

(b)

otherwise, the annual rate currently applicable to a vehicle under F1paragraph 1(2) of Schedule 1.

(5)

The rate of duty applicable to a trade licence taken out for a period of six months is fifty-five per cent. of the rate applicable to the corresponding trade licence taken out for a period of twelve months.

(6)

In determining a rate of duty under subsection (5) any fraction of five pence—

(a)

if it exceeds two and a half pence, shall be treated as five pence, and

(b)

otherwise, shall be disregarded.”