Vehicle Excise and Registration Act 1994

Part I — Vehicle excise duty and licences

Main provisions

Relevant period for purposes of section 30.

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• (1) A duty of excise (“vehicle excise duty”) shall be charged in respect of every mechanically propelled vehicle that—

• (a) is registered under this Act (see section 21), or

• (b) is not so registered but is used, or kept, on a public road in the United Kingdom.

• (1A) Vehicle excise duty shall also be charged in respect of every thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle and—

• (a) is registered under this Act, or

• (b) is not so registered but is used, or kept, on a public road in the United Kingdom.

• (1B) In the following provisions of this Act “vehicle” means—

• (a) a mechanically propelled vehicle, or

• (b) any thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle.

• (1C) Vehicle excise duty charged in respect of a vehicle by subsection (1)(a) or (1A)(a) shall be paid on a licence to be taken out—

• (a) by the person in whose name the vehicle is registered under this Act, or

• (b) if that person is not the person keeping the vehicle, by either of those persons.

• (1D) Vehicle excise duty charged in respect of a vehicle by subsection (1)(b) or (1A)(b) shall be paid on a licence to be taken out by the person keeping the vehicle.

• (2) A licence taken out for a vehicle is in this Act referred to as a “vehicle licence”.

Exceptions to section 31A

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• (1) Vehicle excise duty in respect of a vehicle of any description is chargeable by reference to the annual rate currently applicable to it in accordance with the provisions of Schedule 1 which relate to vehicles of that description.

• (2) Subsection (1) applies subject to the following provisions of this section.

• (3) Where vehicle excise duty is charged by section 1(1)(b) or (1A)(b) in respect of the keeping of a vehicle on a road (and not in respect of its use), duty in respect of such keeping is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1.

• (4) Subsections (5) and (6) apply where—

• (a) vehicle excise duty is charged by section 1(1)(a) or (1A)(a) in respect of a vehicle, and

• (b) were the vehicle not registered under this Act, duty would not be charged by section 1(1)(b) or (1A)(b) in respect of the use of the vehicle on a road.

• (5) Where one or more use licences have previously been issued for the vehicle, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the annual rate currently applicable to a vehicle of the same description as that of the vehicle on the occasion of the issue of that licence (or the last of those licences).

• (6) In any other case, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1.

• (7) In subsection (5) “use licence” means—

• (a) a vehicle licence issued for the use of a vehicle, or

• (b) a vehicle licence that is issued by reason of a vehicle being registered under this Act but which would have been issued for the use of the vehicle if the vehicle had not been registered under this Act.

Duration of licences

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• (1) A vehicle licence may be taken out for any vehicle for any period of twelve months running from the beginning of the month in which the licence first has effect.

• (2) A vehicle licence may be taken out for a vehicle for a period of six months running from the beginning of the month in which the licence first has effect if—

• (a) the annual rate of vehicle excise duty in respect of the vehicle exceeds £50, or

• (b) the vehicle is one to which the annual rate of vehicle excise duty specified in paragraph 11C(2)(a) of Schedule 1 applies (tractive units: special cases).

• (3) The Secretary of State may by order provide that a vehicle licence may be taken out for a vehicle for such period as may be specified in the order.

• (4) An order under subsection (3) may specify—

• (a) a period of a fixed number of months (not exceeding fifteen) running from the beginning of the month in which the licence first has effect,

• (b) in the case of the first vehicle licence for a vehicle of such description as may be specified in the order, a period exceeding by such number of days (not exceeding thirty) as may be determined by or under the order the period for which the licence would otherwise have effect by virtue of subsection (1) or (2) or of an order under paragraph (a), or

• (c) in the case of a vehicle of such description (or of such description and used in such circumstances) as may be specified in the order, a period of less than one month.

• (5) An order under subsection (3)—

• (a) may be made so as to apply only to vehicles of specified descriptions, and

• (b) may make different provision for vehicles of different descriptions or for different circumstances.

• (6) The power to make an order under subsection (3) includes power to make transitional provisions and to amend or repeal subsection (1) or (2).

• (7) Neither subsection (2) nor any order under subsection (3) permits the first vehicle licence for a vehicle to be taken out for a period of less than twelve months if the annual rate of vehicle excise duty chargeable on the licence would be lower if it were not the first vehicle licence for the vehicle.

Amount of duty

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• (1) Where a vehicle licence for a vehicle of any description is taken out for a period of 12 months, vehicle excise duty is to be paid on the licence—

• (a) at the annual rate of duty applicable to vehicles of that description, or

• (b) if the duty is to be paid by more than one instalment pursuant to an agreement under section 19B, at a rate equal to 105% of that annual rate.

• (2) Subject to subsection (2A), where a vehicle licence for a vehicle of any description is taken out for a period of 6 months, vehicle excise duty is to be paid on the licence—

• (a) at a rate equal to 55% of the annual rate of duty applicable to vehicles of that description, or

• (b) if the duty is to be paid by direct debit pursuant to an agreement under section 19B, at a rate equal to 52.5% of that annual rate.

• (2A) In the case of a vehicle which is charged to HGV road user levy, the reference in subsection (2)(a) to 55% is to be read as a reference to 50%.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Where a vehicle licence for a vehicle of any description is taken out for a period specified in an order under section 3(3), vehicle excise duty shall be paid on the licence at such rate as may be specified in the order.

• (5) A rate of vehicle excise duty specified in an order under section 3(3) in relation to a licence taken out for a vehicle for a period of—

• (a) a fixed number of months other than twelve, or

• (b) less than one month,

shall be such as to bear to the annual rate of duty applicable to the vehicle no less proportion than the period for which the licence is taken out bears to a year.

• (6) A rate of vehicle excise duty specified in an order under section 3(3) in relation to a licence taken out for a vehicle for a period of three months or a period of four months shall not exceed for each month of the period ten per cent. of the annual rate of duty applicable to the vehicle.

• (7) The power to make an order under section 3(3) includes power to amend or repeal subsection (2) ... of this section.

Proceedings in England and Wales or Northern Ireland.

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• (1) No vehicle excise duty shall be charged in respect of a vehicle if it is an exempt vehicle.

• (2) Schedule 2 specifies descriptions of vehicles which are exempt vehicles.

• (3) The Secretary of State may by order amend Schedule 2 in order to make provision about the descriptions of—

• (a) tractors, and

• (b) vehicles used for purposes relating to agriculture, horticulture or forestry,

that are to be exempt vehicles.

• (4) An order under subsection (3) may in particular repeal any of paragraphs 20A to 20D of Schedule 2.

Authorised persons.

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• (1) Vehicle excise duty shall be levied by the Secretary of State.

• (2) For the purpose of levying vehicle excise duty the Secretary of State and his officers (including any body or person authorised by the Secretary of State to act as his agent for the purposes of this Act) have the same powers, duties and liabilities as the Commissioners of Customs and Excise and their officers have with respect to—

• (a) duties of excise (other than duties on imported goods),

• (b) the issue and cancellation of licences on which duties of excise are imposed, and

• (c) other matters (not being matters relating only to duties on imported goods),

under the enactments relating to duties of excise and excise licences.

• (3) The enactments relating to duties of excise, or punishments and penalties in connection with those duties, (other than enactments relating only to duties on imported goods) apply accordingly.

• (4) Subsections (2) and (3) have effect subject to the provisions of this Act (including in particular, in the case of subsection (3), subsection (6) of this section and sections 47, 48 and 56).

• (5) The Secretary of State has with respect to vehicle excise duty and licences under this Act the powers given to the Commissioners of Customs and Excise by the enactments relating to duties of excise and excise licences for the mitigation or remission of any penalty or part of a penalty.

• (6) Vehicle excise duty, and any sums received by the Secretary of State by virtue of this Act by way of fees, shall be paid into the Consolidated Fund.

Vehicle licences

Issue of vehicle licences

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• (1) Every person applying for a vehicle licence shall—

• (a) make any such a declaration, and

• (b) furnish any such particulars and any such documentary or other evidence,

(whether or not with respect to the vehicle for which the licence is to be taken out) as may be specified by the Secretary of State.

• (2) The declarations , particulars and evidence which may be so specified include, in relation to a person applying for a licence for a goods vehicle or a special vehicle, a declaration as to, particulars of and evidence in relation to, any of the matters specified in subsection (3) as to which the Secretary of State may require information with a view to an alteration in the basis on which vehicle excise duty is chargeable in respect of goods vehicles or, as the case may be, special vehicles.

• (3) The matters referred to in subsection (2) are—

• (a) the construction of the vehicle,

• (b) the vehicle’s revenue weight,

• (ba) the place where the vehicle has been or is normally kept, and

• (c) the use to which the vehicle has been or is likely to be put.

• (3A) A person applying for a licence shall not be required to make a declaration specified for the purposes of subsection (1)(a) if he agrees to comply with such conditions as may be specified in relation to him by the Secretary of State.

• (3B) The conditions which may be specified under subsection (3A) include

• (a) a condition that particulars for the time being specified for the purposes of subsection (1)(b) are furnished by being transmitted to the Secretary of State by such electronic means as he may specify ; and

• (b) a condition requiring such payments as may be specified by the Secretary of State to be made to him in respect of—

• (i) steps taken by him for facilitating compliance by any person with any condition falling within paragraph (a); and

• (ii) in such circumstances as may be so specified, the processing of applications for vehicle licences where particulars are transmitted in accordance with that paragraph.

• (4) A vehicle licence is issued for the vehicle specified in the application for the licence (and for no other).

• (5) The Secretary of State is not required to issue a vehicle licence for which an application is made unless he is satisfied—

• (a) that the licence applied for is the appropriate licence for the vehicle specified in the application, and

• (b) in the case of an application for a licence for a vehicle purporting to be the first application for a licence for the vehicle, that a licence has not previously been issued for the vehicle.

• (5A) The Secretary of State is not required to issue a vehicle licence for a heavy goods vehicle if not satisfied that the appropriate HGV road user levy has been paid.

• (5B) The Secretary of State may not issue a vehicle licence in respect of a vehicle—

• (a) completed before IP completion day,

• (b) which is to be, or is normally, kept at a place in Great Britain, and

• (c) in respect of which there is an EC certificate of conformity issued in reliance on a relevant European approval granted by or on the authority of an EU State,

unless the vehicle satisfies one of the conditions in subsection (5C).

• (5C) The conditions are—

• (a) the vehicle is qualifying Northern Ireland goods;

• (b) the vehicle was in the United Kingdom immediately before IP completion day;

• (c) a relevant UK certificate has effect with respect to the vehicle.

• (5D) The Secretary of State may not issue a vehicle licence in respect of a vehicle which—

• (a) is completed on or after IP completion day, and

• (b) is to be kept, or is normally kept, at a place in Great Britain,

unless the vehicle satisfies one of the conditions in subsection (5E).

• (5E) The conditions are—

• (a) the vehicle is qualifying Northern Ireland goods in respect of which there is an EC certificate of conformity issued in reliance on a relevant European approval granted by or on the authority of an EU State;

• (b) a relevant UK certificate has effect with respect to the vehicle.

• (5F) The Secretary of State may not issue a vehicle licence in respect of a vehicle—

• (a) completed before IP completion day, and

• (b) which is to be, or is normally, kept at a place in Northern Ireland,

unless the vehicle satisfies one of the conditions in subsection (5G).

• (5G) The conditions are—

• (a) an EC certificate of conformity issued in reliance on a relevant European approval granted by or on the authority of an EU State has effect in respect of the vehicle;

• (b) the vehicle was in the United Kingdom immediately before IP completion day and a relevant UK certificate issued before that day has effect with respect to it.

• (5H) The Secretary of State may not issue a vehicle licence in respect of a vehicle—

• (a) which is completed on or after IP completion day, and

• (b) which is, or is to be, kept at a place in Northern Ireland,

unless the vehicle satisfies one of the conditions in subsection (5I).

• (5I) The conditions are—

• (a) an EC certificate of conformity issued in reliance on a relevant European approval granted by or on the authority of an EU State has effect in respect of the vehicle;

• (b) a relevant Northern Ireland certificate has effect in respect of the vehicle.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) In this section—

• “the appropriate HGV road user levy”, in relation to a vehicle licence, means the HGV road user levy charged for the period for which the licence would have effect;

• “EC certificate of conformity” has the meaning given in section 85 of the Road Traffic Act 1988;

• “EU State” means— in relation to the period before IP completion day, a member State other than the United Kingdom, andin relation to the period on or after IP completion day, a member State;

• “heavy goods vehicle” has the same meaning as in the HGV Road User Levy Act 2013;

• “qualifying Northern Ireland goods” has the meaning given by regulations made under section 8C(6) of the European Union (Withdrawal) Act 2018;

• “relevant European approval” has the meaning given in section 55(1C) of the Road Traffic Act 1988;

• “relevant Northern Ireland certificate” means— a certificate issued pursuant to regulation 16(7) or 18(10) of the Road Vehicles (Approval) Regulations 2020 (S.I. 2020/818), as they apply in and in relation to Northern Ireland,a certificate of conformity issued under Article 31A(3) of the Road Traffic (Northern Ireland) Order 1981,a Department’s approval certificate issued under Article 31A(4) or (5) of that Order, oran EC certificate of conformity issued in reliance on a valid relevant European approval granted by or on the authority of the Secretary of State in relation to Northern Ireland;

• “relevant UK certificate” means—a certificate of conformity issued under section 57 of the Road Traffic Act 1988,a Minister's approval certificate issued under section 58 of that Act,a certificate issued pursuant to regulation 25(10) or 27(10) of the Road Vehicles (Approval) Regulations 2009 (S.I. 2009/717),a certificate issued pursuant to regulation 16(7) or 18(10) of the Road Vehicles (Approval) Regulations 2020 (S.I. 2020/818), a certificate of conformity issued under Article 31A(3) of the Road Traffic (Northern Ireland) Order 1981,a Department's approval certificate issued under Article 31A(4) or (5) of that Order, oran EC certificate of conformity which was issued otherwise than in reliance on a valid relevant European approval granted by or on the authority of an EU State;

• “special vehicle” has the same meaning as in paragraph 4 of Schedule 1.

Vehicles removed into UK

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