Vehicle Excise and Registration Act 1994 section 11

Issue of trade licences

Section 11 sets out who may apply for a trade licence, the process for obtaining one, and which vehicles the licence covers depending on whether the holder is a motor trader (including a vehicle manufacturer) or a vehicle tester.

• Motor traders, vehicle testers, and persons intending to start business as either may apply to the Secretary of State for a trade licence, subject to prescribed conditions and payment of the applicable rate of vehicle excise duty.
• The Secretary of State may impose conditions on trade licences, including conditions that must be met after the licence has been issued.
• For motor traders who are vehicle manufacturers, the trade licence covers vehicles temporarily in their possession in the course of business, vehicles kept solely for research and development, and vehicles submitted by other manufacturers for road testing.
• For other motor traders, the licence covers vehicles temporarily in their possession in the course of trade, and for vehicle testers it covers vehicles submitted to them for testing.