Vehicles (Excise) Act 1971

2 Commencement and duration of licences, and rate of duty

(1) A vehicle licence may be taken out—

(a) in the case of any vehicle, for any period of twelve months;

(b) in the case of any vehicle the annual rate of duty applicable to which exceeds £8, for any period of four months,

(c) in the case of a goods vehicle which is authorised to be used on roads by virtue of an order made under section 64(4) of the [1960 c. 16.] Road Traffic Act 1960, and the unladen weight of which exceeds eleven tons, for any period of seven consecutive days (such a licence being hereafter in this Act referred to as a " seven day licence ");

and shall, subject to the provisions of section 13 of this Act, first have effect on the day specified by the applicant in the application for the licence.

(2) A licence for a period of four months shall expire with such day in the fourth month after that in which the licence first has effect as corresponds to the day preceding that on which it first has effect, so however that a licence for that period shall—

(a) if it first has effect on the first day of a month, expire with the last day of the third month after that month ; and

(b) if it first has effect on 30th or 31st October, expire with the last day of the following February.

(3) A licence which first has effect before the day on which it is issued shall not affect any criminal liability incurred before that day.

(4) The duty payable on a vehicle licence for a vehicle of any description shall—

(a) if the licence is taken out for a period of twelve months, be paid at the annual rate of duty applicable to vehicles of that description;

(b) if the licence is taken out for a period of four months, be paid at a rate equal to eleven thirtieths of the said annual rate;

(c) if the licence is taken out for a period of seven days, be paid at a rate equal to one fifty-second of the said annual rate plus ten per cent, of that amount;

and in computing the rate of duty in accordance with paragraph (b) or paragraph (c) above, any fraction of 5p shall be treated as 5p if it exceeds 2-5p and shall otherwise be disregarded.

(5) Notwithstanding anything in this Act, the Secretary of State may, during the period of two years beginning with the day when this subsection first takes effect, provide by regulations that, in such cases as may be determined by or under the regulations, the duration of a licence taken out after the coming into force of the regulations shall be longer or shorter, by such period not exceeding thirty days as may be so determined, than its duration would have been apart from the regulations; and where the duration of a licence is altered by virtue of this subsection the duty payable upon the licence shall be increased or reduced proportionately.

(6) At the expiration of the period of two years mentioned in subsection (5) above that subsection shall cease to have effect, but without prejudice to any licence issued or any payment made or falling to be made by virtue of any regulations in force under that subsection immediately before the expiration of that period.