Vehicles (Excise) Act 1971

6 Exemptions from duty in respect of vehicles acquired by overseas residents

(1) A mechanically propelled vehicle shall not be chargeable with any duty under this Act if purchase tax in respect of the vehicle is remitted under section 23 of the [1963 c. 9.] Purchase Tax Act 1963 (remission of tax on exported vehicles) on the ground that the vehicle has been acquired from its manufacturer by a person who is an overseas resident; but if at any time purchase tax becomes payable in respect of that vehicle under section 9 of the [1967 c. 54.] Finance Act 1967 (purchase tax payable where conditions of remission broken), or would have become so payable but for any authorisation or waiver under subsection (1) of the said section 9, then the provisions of subsection (3) below shall apply in relation to that vehicle.

(2) Where in the case of any mechanically propelled vehicle it is shown to the satisfaction of the Secretary of State—

(a) that the vehicle is not chargeable with purchase tax; and

(b) that the vehicle is being acquired from a person who is for the time being registered as a manufacturer of such vehicles by the Secretary of State and who is the manufacturer of the vehicle for the purposes of that register; and

(c) that the person so acquiring the vehicle would fall to be treated as an overseas resident for the purposes of the said section 23,

the Secretary of State may exempt the vehicle from duty under this Act for a period of twelve months subject to specified conditions, being such conditions as the Secretary of State may from time to time think necessary for the protection of the revenue; but if at any time during those twelve months any of the conditions subject to which the exemption is granted is not complied with, the provisions of subsection (3) below shall apply in relation to the vehicle.

(3) Where under subsection (1) or (2) above the provisions of this subsection are to apply in relation to a vehicle, the vehicle shall be deemed never to have been exempted from duty under the said subsection (1) or (2) and, without prejudice to the provisions of section 9 of this Act, unless, or except to the extent that, the Secretary of State sees fit to waive payment of the whole or part of the duty, there shall be recoverable by the Secretary of State as a debt due to him—

(a) from the person by whom the vehicle was acquired from its manufacturer, the duty in respect of the whole period since the registration of the vehicle; or

(b) from any other person who is for the time being the keeper of the vehicle, the duty in respect of the period since the vehicle was first kept by that other person,

other than any part of that period by reference to which there was calculated an amount ordered to be paid by the person in question in respect of the vehicle in pursuance of section 9(1) of this Act.