13 Trade licences: duration and amount of duty.U.K.
(1)A trade licence may be taken out—
(a)for one calendar year,
(b)for a period of six months beginning with the first day of January or of July, or
(c)where subsection (2) applies, for a period of seven, eight, nine, ten or eleven months beginning with the first day of any month other than January or July [F1and ending no later than the relevant date].
[F2(1A)In subsection (1)(c) “the relevant date” means—
(a)in relation to a licence taken out for a period beginning with the first day of any of the months February to June in any year, 31st December of that year;
(b)in relation to a licence taken out for a period beginning with the first day of any of the months August to December in any year, 30th June of the following year.]
(2)This subsection applies where the person taking out the licence—
(a)is not a motor trader or vehicle tester (having satisfied the Secretary of State as mentioned in section 11(1)(b)), or
(b)does not hold any existing trade licence.
(3)The rate of duty applicable to a trade licence taken out for a calendar year is—
(a)the annual rate currently applicable to a vehicle under sub-paragraph [F3(1)(d)] of paragraph 2 of Schedule 1 if the licence is to be used only for vehicles to which that paragraph applies, and
(b)otherwise, the annual rate currently applicable to a vehicle under paragraph [F4paragraph 1(2) of Schedule 1].
(4)The rate of duty applicable to a trade licence taken out for a period of six months is fifty-five per cent. of the rate applicable to the corresponding trade licence taken out for a calendar year.
(5)The rate of duty applicable to a trade licence taken out for a period of seven, eight, nine, ten or eleven months is the aggregate of—
(a)fifty-five per cent. of the rate applicable to the corresponding trade licence taken out for a calendar year, and
(b)one-sixth of the amount arrived at under paragraph (a) in respect of each month in the period in excess of six.
(6)In determining a rate of duty under subsection (4) or (5) any fraction of five pence—
(a)if it exceeds two and a half pence, shall be treated as five pence, and
(b)otherwise, shall be disregarded.
Textual Amendments
F1Words in s. 13(1)(c) inserted (1.5.1995 with effect as mentioned in Sch. 4 para. 31(3) of the amending Act) by 1995 c. 4, s. 19, Sch. 4 Pt. V para. 31(1)(3)
F2S. 13(1A) inserted (1.5.1995 with effect as mentioned in Sch. 4 para. 31(3) of the amending Act) by 1995 c. 4, s. 19, Sch. 4 Pt. V para. 31(2)(3)
F3Words in s. 13(3)(a) substituted (24.7.2002 with application as mentioned in s. 18(3) of the amending Act) by Finance Act 2002 (c. 23), s. 18(2)
F4Words in s. 13(3)(b) substituted (27.7.1999 with effect as mentioned in s. 8(5) of the amending Act) by 1999 c. 16, s. 8(4)(5)