Part 1

EXCISE DUTIES

Vehicle excise duty

Exemption of agricultural etc. vehicles
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1
In Schedule 2 to the Vehicle Excise and Registration Act 1994 (exempt vehicles), after paragraph 20A insert—

Tractors
20B
1
A vehicle is an exempt vehicle if it is—
a
an agricultural tractor, or
b
an off-road tractor.
2
In sub-paragraph (1) “agricultural tractor” means a tractor used on public roads solely for purposes relating to agriculture, horticulture, forestry or activities falling within sub-paragraph (3).
3
The activities falling within this sub-paragraph are—
a
cutting verges bordering public roads;
b
cutting hedges or trees bordering public roads or bordering verges which border public roads.
4
In sub-paragraph (1) “off-road tractor” means a tractor which is not an agricultural tractor (within the meaning given by sub-paragraph (2)) and which is—
a
designed and constructed primarily for use otherwise than on roads, and
b
incapable by reason of its construction of exceeding a speed of twenty-five miles per hour on the level under its own power.

Light agricultural vehicles
20C
1
A vehicle is an exempt vehicle if it is a light agricultural vehicle.
2
In sub-paragraph (1) “light agricultural vehicle” means a vehicle which—
a
has a revenue weight not exceeding 1,000 kilograms,
b
is designed and constructed so as to seat only the driver,
c
is designed and constructed primarily for use otherwise than on roads, and
d
is used solely for purposes relating to agriculture, horticulture or forestry.

Agricultural engines
20D
An agricultural engine is an exempt vehicle.

Mowing machines
20E
A mowing machine is an exempt vehicle.

Steam powered vehicles
20F
A steam powered vehicle is an exempt vehicle.

Electrically propelled vehicles
20G
An electrically propelled vehicle is an exempt vehicle.

Snow ploughs
20H
A vehicle is an exempt vehicle when it is—
a
being used,
b
going to or from the place where it is to be or has been used, or
c
being kept for use,
for the purpose of clearing snow from public roads by means of a snow plough or similar device (whether or not forming part of the vehicle).

Gritters
20J
A vehicle is an exempt vehicle if it is constructed or adapted, and used, solely for the conveyance of machinery for spreading material on roads to deal with frost, ice or snow (with or without articles or material used for the purposes of the machinery).
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2
In Part 2 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of duty: motorcycles), paragraph 2 is amended as follows—
a
in sub-paragraph (1)(a) (rate of duty for electrically propelled motorcycles etc.), omit “or the motorcycle is an electrically propelled vehicle”, and
b
in sub-paragraph (3), in the definition of “motorcycle”, after “motortricycle” insert “ but does not include an electrically propelled vehicle ”.
3
Part 4A of Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty: special concessionary vehicles) shall cease to have effect.
4
The amendments made by subsections (1) to (3) and (13) apply to licences issued on or after 1st April 2001.
5
Subsection (6) applies where a licence—
a
is issued before 1st April 2001 for a relevant vehicle, and
b
is in force on 1st April 2001 or comes into force after 1st April 2001.
6
The licence shall, during the period—
a
beginning with the later of 1st April 2001 and the day when it comes into force, and
b
ending with the expiry of the period for which it is issued,
be deemed to be a nil licence for the purposes of the Vehicle Excise and Registration Act 1994 (c. 22).
7
A refund shall be made by the Secretary of State, in accordance with the following provisions of this section, in respect of a licence for a relevant vehicle that—
a
is issued before 1st March 2001, in force on 1st March 2001 and not surrendered before 1st April 2001,
b
is issued before 1st March 2001, comes into force after 1st March 2001 and is not surrendered before 1st April 2001, or
c
is issued in March 2001 and not surrendered before 1st April 2001.
8
The amount of the refund is one-twelfth of the annual rate of duty chargeable on the licence for—
a
in the case of a licence issued before 1st March 2001, each whole month after February 2001 that forms part of the period for which the licence was issued, and
b
in the case of a licence issued on or after 1st March 2001, each whole month of the period for which the licence is issued.
9
The person entitled to the refund is the person registered as the keeper of the relevant vehicle on 30th April 2001.
10
The provisions of sections 10(2) and 19 of the Vehicle Excise and Registration Act 1994 (surrender of licences) do not apply to a licence in respect of which a person is entitled to a refund under this section.
11
In the application of this section to Northern Ireland, references to registration as the keeper of a vehicle shall be read as references to registration as the owner of the vehicle.
12
In subsections (5) to (9) “relevant vehicle” means a vehicle of any of the descriptions mentioned in the paragraphs 20B to 20J inserted by subsection (1).
13
For section 16(1) of the Finance Act 1996 (c. 8) substitute—
1
Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows.
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14
This section shall be deemed to have come into force on 1st April 2001.