Vehicle Excise and Registration Act 1994

3 (1) The annual rate of vehicle excise duty applicable to a hackney carriage (not being a vehicle for which the annual rate of duty is specified by Part II) is—

(a) £130 if its seating capacity is under nine,

(b) £150 if its seating capacity is nine to sixteen,

(c) £200 if its seating capacity is seventeen to thirty-five,

(d) £300 if its seating capacity is thirty-six to sixty, and

(e) £450 if its seating capacity is over sixty.

(2) For the purpose of sub-paragraph (1) the seating capacity of a hackney carriage shall be determined in accordance with regulations made by the Secretary of State.

(3) In this paragraph“hackney carriage” means a vehicle—

(a) standing or plying for hire, or

(b) bailed (or, in Scotland, hired) under a hire agreement by a person whose trade it is to sell vehicles or to bail or hire vehicles under hire agreements,

other than a community bus.

(4) In sub-paragraph (3)“hire agreement” means an agreement for the bailment (or, in Scotland, the hiring) of a vehicle which is not a hire purchase agreement.

(5) In sub-paragraph (4)“hire purchase agreement” means an agreement, other than a conditional sale agreement, under which—

(a) a vehicle is bailed (or, in Scotland, hired) in return for periodical payments by the person to whom it is bailed (or hired), and

(b) the property in the vehicle will pass to that person if—

(i) the terms of the agreement are complied with, and

(ii) there takes place any one or more of the occurrences specified in sub-paragraph (6).

(6) The occurrences referred to in sub-paragraph (5)(b)(ii) are—

(a) the exercise of an option to purchase by the person to whom the vehicle is bailed (or hired),

(b) the doing of any other specified act by any party to the agreement, and

(c) the happening of any other specified event.

(7) In sub-paragraph (5)“conditional sale agreement” means an agreement for the sale of a vehicle under which—

(a) the whole or part of the purchase price is payable by instalments, and

(b) the property in the vehicle is to remain in the seller (even though the buyer is to be in possession of the vehicle) until such conditions (relating to the payment of instalments or any other matter) as may be specified in the agreement are fulfilled.

(8) In sub-paragraph (3)“community bus” means a vehicle—

(a) used on public roads solely in accordance with a community bus permit (within the meaning of section 22 of the [1985 c. 67.] Transport Act 1985), and

(b) not used for providing a service under an agreement providing for service subsidies (within the meaning of section 63(10)(b) of that Act).