Part I Vehicle excise duty and licences
Trade licences
13 Trade licences: duration and amount of duty.
1
A trade licence may be taken out—
a
for one calendar year,
b
for a period of six months beginning with the first day of January or of July, or
c
where subsection (2) applies, for a period of seven, eight, nine, ten or eleven months beginning with the first day of any month other than January or July F1and ending no later than the relevant date.
F21A
In subsection (1)(c) “the relevant date” means—
a
in relation to a licence taken out for a period beginning with the first day of any of the months February to June in any year, 31st December of that year;
b
in relation to a licence taken out for a period beginning with the first day of any of the months August to December in any year, 30th June of the following year.
2
This subsection applies where the person taking out the licence—
a
is not a motor trader or vehicle tester (having satisfied the Secretary of State as mentioned in section 11(1)(b)), or
b
does not hold any existing trade licence.
3
The rate of duty applicable to a trade licence taken out for a calendar year F7(“the applicable annual rate”) is—
a
the annual rate currently applicable to a vehicle under sub-paragraph F3(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 F4basic goods vehicle rate currently applicable.
F83A
Where a trade licence is taken out for a calendar year 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.
F94
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 a calendar year, 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.
5
The rate of duty applicable to a trade licence taken out for a period of seven, eight, nine, ten or eleven months is the aggregate of—
a
fifty-five per cent. of the F10applicable annual rate for a corresponding trade licence taken out for a calendar year, and
b
one-sixth of the amount arrived at under paragraph (a) in respect of each month in the period in excess of six.
6
In determining a rate of duty under F11subsection (3A), (4) 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.
F57
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—
F6a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.