Vehicle Excise and Registration Act 1994 schedule 4 paragraph 8

Trade licences: duration and rate of duty

Schedule 4 paragraph 8 sets out the duration options available for trade licences and the rates of vehicle excise duty applicable to each, including adjustments for payment by instalments.

• Trade licences may be taken out for twelve months or six months, but non-motor-traders may only obtain a six-month licence, and the Secretary of State may also restrict new motor traders or vehicle testers to six months.
• The annual duty rate depends on how the licence will be used: a lower rate applies if only bicycles and certain lighter vehicles are involved; otherwise the "basic goods vehicle rate" applies, based on a rigid goods vehicle with a revenue weight between 3,500 kg and 7,500 kg.
• If a twelve-month licence is paid by instalments under an agreement with the Secretary of State, the duty is increased to 105% of the annual rate; a six-month licence costs 55% of the annual rate, or 52.5% if paid by direct debit under such an agreement.
• Any existing trade licence in force at the time these substituted provisions come into effect remains valid and is unaffected by the change in rules.

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