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 F6(“the applicable annual rate”) is—

a

the annual rate currently applicable to a vehicle under sub-paragraph F1(1)(d) 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 F2basic goods vehicle rate currently applicable.

F74A

Where a trade licence is taken out for a period of 12 months and the duty is to be paid by more than one instalment pursuant to an agreement under section 19B, the rate of duty is 105% of the applicable annual rate.

F85

The rate of duty applicable to a trade licence taken out for a period of 6 months is—

a

55% of the applicable annual rate for a corresponding trade licence taken out for 12 months, or

b

if the duty is to be paid by direct debit pursuant to an agreement under section 19B, 52.5% of that applicable annual rate.

6

In determining a rate of duty under F9subsection (4A) or (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.

F37

In this section “the basic goods vehicle rate” means the annual rate applicable, by virtue of sub-paragraph (1) of paragraph 9 of Schedule 1, to a rigid goods vehicle which—

F4a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

falls within column (3) of the table in that sub-paragraph and has a revenue weight exceeding 3,500 kilograms and not exceeding 7,500 kilograms.