Finance Act 1989

14 Dishonoured cheques

(1) After section 26 of the Vehicles (Excise) Act 1971 there shall be inserted—

“26A Dishonoured cheques: additional liability in certain cases

(1) Where a person has been convicted of an offence under section 102 of the [1979 c. 2.] Customs and Excise Management Act 1979 (payment for licence by dishonoured cheque) in relation to a licence issued under this Act, the court shall, in addition to any penalty which it may impose under that section, order him to pay an amount equal to one twelfth of the appropriate annual rate of duty for each month or part of a month in the relevant period.

(2) The relevant period for the purposes of this section is the period which—

(a) begins with the first day of the period for which the licence was applied for or, if it is later, the day on which the licence first was to have effect, and

(b) ends with whichever is the earliest of the following, namely—

(i) the end of the month in which the order is made;

(ii) the date on which the licence was due to expire;

(iii) the end of the month during which the licence was delivered up; and

(iv) the end of the month preceding that in which a new licence for the licensed vehicle first had effect.

(3) The appropriate annual rate of duty for the purposes of this section is the annual rate of duty which, at the beginning of the relevant period, was appropriate to a vehicle of the description specified in the application.

(4) Where an order has previously been made against a person under section 9 of this Act to pay an amount for a month or part of a month in the case of a vehicle, the amount which he is ordered to pay under this section in the case of the vehicle shall be calculated as if no part of that month were comprised in the relevant period.”

(2) After section 26 of the [1972 c. 10 (N.I.).] Vehicles (Excise) Act (Northern Ireland) 1972 there shall be inserted the section set out in subsection (1) above, but with the substitution for the reference to section 102 of the [1979 c. 2.] Customs and Excise Management Act 1979 of a reference to section 10 of the [1972 c. 11 (N.I.).] Miscellaneous Transferred Excise Duties Act (Northern Ireland) 1972.

(3) In section 9 of the [1971 c. 10.] Vehicles (Excise) Act 1971 (additional liability for keeping unlicensed vehicle) after subsection (3) there shall be inserted—

“(3A) Where an order has previously been made against a person under section 26A of this Act to pay an amount for a month or part of a month in the case of a vehicle, the amount which he is ordered to pay under this section in the case of the vehicle shall be calculated as if no part of that month were comprised in the relevant period.”

(4) In section 9 of the Vehicles (Excise) Act (Northern Ireland) 1972 (corresponding provision in Northern Ireland) after subsection (4) there shall be inserted—

“(4A) Where an order has previously been made against a person under section 26A to pay an amount for a month or part of a month in the case of a vehicle, the amount which he is ordered to pay under this section in the case of the vehicle shall be calculated as if no part of that month were comprised in the relevant period.”

(5) In section 34 of the Vehicles (Excise) Act 1971 (establishing amount of penalty on plea of guilty by absent accused)—

(a) after the words “section 8 of this Act” there shall be inserted the words “, or under section 102 of the [1979 c. 2.] Customs and Excise Management Act 1979 in relation to a licence issued under this Act,”, and

(b) after the words “section 9(1)” in each place where they occur there shall be inserted the words “or, as the case may be, 26A(1)”.

(6) In section 32A of the [1972 c. 10 (N.I.).] Vehicles (Excise) Act (Northern Ireland) 1972 (corresponding provision in Northern Ireland)—

(a) after the words “section 8” there shall be inserted the words “or under section 10 of the [1972 c. 11 (N.I.).] Miscellaneous Transferred Excise Duties Act (Northern Ireland) 1972 in relation to a licence issued under this Act”, and

(b) after the words “section 9(1)” in each place where they occur there shall be inserted the words “or, as the case may be, section 26A(1)”.

(7) This section shall apply in relation to licences taken out on or after the day on which this Act is passed.