Vehicle Excise and Registration Act 1994 section 15

Vehicles becoming chargeable to duty at higher rate

Section 15 deals with what happens when a vehicle that already has a valid vehicle licence is used in a way that attracts a higher rate of vehicle excise duty, and how the additional duty is calculated and paid.

• If a vehicle with a current licence is used in an altered condition or for a different purpose that attracts a higher duty rate, the higher rate becomes chargeable immediately.
• The existing licence can be exchanged for a new one covering the remaining period, on payment of the proportionate difference between the original and higher duty rates.
• The additional amount payable is calculated as a proportion of the difference in duty, based on the number of whole months remaining on the licence compared to the total licence period.
• If the higher rate of duty has changed since the original licence was issued, the calculation uses the rate in force at the time it becomes chargeable, as though that rate had always applied.