Introduction Details of the Schedule
10.Paragraph 2(2) amends section 3(4)(b) of VERA to reflect the fact that the expression ‘first vehicle licence’ is to become a defined term in VERA.
11.Paragraph 2(3) inserts new section 3(7) into VERA to make an exception to the general rule that a licence may be taken out for a period of six months where the annual rate of duty exceeds £50. This exception applies in the case of a first vehicle licence, as defined by amendment to VERA under Paragraph 4 (2) of this Schedule, where allowing a six-month period of licensing would lead to a lower rate of VED being chargeable over the first year as a whole.
12.Paragraphs 3(2) and (3) amends sections 19(1) and (2) of VERA to provide that the person applying for a rebate on a licence that is currently in force for a vehicle may receive ‘the relevant amount’. This amendment is consequential on the other amendments to section 19 of VERA made by paragraph 3 of the Schedule to the Act.
13.Paragraph 3(4) inserts new sections 19(3A) and (3B) into VERA, which relate to the method of calculation of the amount of a rebate on a licence. A reference to ‘the relevant amount’ is inserted by the amendment and it is specified that the method of calculation is subject to an exception. The exception is that, where the annual rate of VED on a vehicle’s first vehicle licence was higher than it would have been if it had not been the first licence taken out on the vehicle, any rebate shall be calculated by reference to the lower rate of VED, rather than the rate of VED actually paid. The exception only applies where the application for a refund is made by virtue of section 19(3)(d), (e) or (f) of VERA.
14.Paragraph 4 (2) amends section 62(1) of VERA to define the expression ‘first vehicle licence’ for the purposes of the Act. A nil licence will not count as a first vehicle licence.
15.Paragraph 4 (3) inserts new sections 62(1B) and (1C) into VERA. Section 62(1B) specifies that where a vehicle has been registered on the issue of a temporary licence, the first vehicle licence is the licence issued following the temporary licence. Section 62(1C) provides that there is deemed to be no first vehicle licence in respect of a specified category of vehicle. This category consists of any vehicle which has previously been registered outside the United Kingdom, and, at its first registration in the United Kingdom, more than six months have passed since its first registration overseas, and it has been driven further than 6,000 kilometres.
16.Paragraph 5 (2)(a) amends paragraph 1A(1)(a) of Schedule 1 to VERA which specifies the circumstances in which the graduated rates of duty apply to cars registered after 1 March 2001. These circumstances are described by reference to first registration of the vehicle. The amendment provides that for these purposes it makes no difference whether the vehicle is first registered in the United Kingdom or overseas.
17.Paragraph 5 (2)(b) makes the same change to paragraph 1A(5) to Schedule 1 of VERA. The effect of paragraph 1A(5) is that the application of the graduated rates of duty is unaffected by modifications which take place after first registration of the vehicle.
18.Paragraph 5 (3)(a) and (b) make the same change to paragraphs 1C(3)(a) and 1C(3)(b) of Schedule 1 to VERA. These provisions of VERA apply a reduced rate of duty to a vehicle which is before first registration (or subsequently) fitted with equipment to meet prescribed emissions standards.
19.Paragraph 5 (3)(c) amends paragraph 1C(4) to Schedule 1 of VERA. This provision of VERA applies a reduced rate of duty to a vehicle which is certified by the Secretary of State before first registration as meeting prescribed emissions standards. The amendment provides that here it is first registration under VERA to which reference is being made.
20.Paragraph 5 (4)(a) amends paragraph 1H(1)(a) of Schedule 1 to VERA which specifies circumstances in which rates of duty other than the general rates apply to a light goods vehicle. These circumstances are described by reference to first registration of the vehicle. The amendment provides that for these purposes it makes no difference whether the vehicle is first registered in the United Kingdom or overseas.
21.Paragraph 5 (4)(b) makes the same change to paragraph 1H(3) of Schedule 1 to VERA. The effect of paragraph 1H(3) is that the application of rates of duty to a light goods vehicle is unaffected by modifications which take place after first registration of the vehicle.
22.Paragraph 5 (5) makes the same change to paragraph 1K(a) of Schedule 1 to VERA. The effect of paragraph 1K(a), when read with paragraph 1J, is to apply a particular rate of duty to a lower-emission van first registered on or after 1 March 2003 and before 1 January 2007.
23.Paragraph 5 (6) makes the same change to paragraph 1M(a) of Schedule 1 to VERA. The effect of paragraph 1M(a), when read with paragraph 1J, is to apply a particular rate of duty to certain types of lower-emission van first registered on or after 1 January 2009 and before 1 January 2011.
24.Paragraph 6 (2) inserts new paragraphs 25(2) and (3) into Schedule 2 to VERA to establish an exemption from duty for vehicles in the period of their first vehicle licence. This exemption applies to light passenger vehicles first registered in the UK or overseas on or after 1 March 2001 that have a CO2 emission value which exceeds 100g/km but not exceeding 130g/km.
25.Paragraph 7 (1) provides that, subject to Paragraph 7(2) of this Schedule, the amendments made by this Schedule will take effect for licences taken out on or after 1 April 2010.
26.Paragraph 7 (2) provides that amendments made by Paragraph 5 of this Schedule do not apply to vehicles first registered under VERA before 1 April 2010.