In Schedule 2 to the M1Vehicle Excise and Registration Act 1994 (exempt vehicles), for paragraph 1A (inserted by section 18 above) there shall be substituted the following paragraph—

“ Old vehicles

1A

(1)

Subject to sub-paragraph (2), a vehicle is an exempt vehicle at any time if it was constructed more than 25 years before the beginning of the year in which that time falls.

(2)

A vehicle is not an exempt vehicle by virtue of sub-paragraph (1) if—

(a)

an annual rate is specified in respect of it by any provision of Part III, V, VI, VII or VIII of Schedule 1; or

(b)

it is a special vehicle, within the meaning of Part IV of Schedule 1, which—

(i)

falls within sub-paragraph (3) or (4); and

(ii)

is not a digging machine, mobile crane, works truck or road roller.

(3)

A vehicle falls within this sub-paragraph if—

(a)

it is designed or adapted for use for the conveyance of goods or burden of any description;

(b)

it is put to a commercial use on a public road; and

(c)

that use is not a use for the conveyance of goods or burden of any description.

(4)

A vehicle falls within this sub-paragraph if—

(a)

it is designed or adapted for use with a semi-trailer attached;

(b)

it is put to a commercial use on a public road; and

(c)

in a case where that use is a use with a semi-trailer attached, the semi-trailer is not used for the conveyance of goods or burden of any description.

(5)

In sub-paragraph (2) “digging machine”, “mobile crane” and “works truck” have the same meanings as in paragraph 4 of Schedule 1.

(6)

In sub-paragraphs (3) and (4) “commercial use” means use for hire or reward or for or in connection with a trade or business.”