In Schedule 1 to the 1994 Act (annual rates of duty) the following paragraph shall be substituted for paragraph 1 (annual rate of duty where no other rate specified)—

“1

(1)

The annual rate of vehicle excise duty applicable to a vehicle in respect of which no other annual rate is specified by this Schedule is—

(a)

if it was constructed after 1946, the general rate;

(b)

if it was constructed before 1947, the reduced rate.

(2)

The general rate is £135.

(3)

The reduced rate is 50 per cent. of the general rate.

(4)

Where an amount arrived at in accordance with sub-paragraph (3) is an amount—

(a)

which is not a multiple of £5, and

(b)

which on division by five does not produce a remainder of £2.50,

the rate is the amount arrived at rounded (either up or down) to the nearest amount which is a multiple of £5.

(5)

Where an amount arrived at in accordance with sub-paragraph (3) is an amount which on division by five produces a remainder of £2.50, the rate is the amount arrived at increased by £2.50.”