Introduction Background Note
5.Vehicle Excise Duty (VED) for motorcycles was reformed in 2002 when the number of engine size based rate bands was increased from three to four. The consultation backing the reform identified motorcycles of up to 400c in engine size as predominantly used for commuting purposes.
6.Motorbicycles weighing not more than 450 kilograms unladen fall into one of four motorcycle rate bands:
7.Motortricycles weighing not more than 450 kilograms unladen fall into one of two bands:
	not more than 150cc (currently £15); or
	more than 150cc (£66 before the increase now proposed).
8.The lowest rate, applicable to motorbicycles and motortricycles with an engine size of not more than 150cc has remained unchanged since 1991.
9.Where a trade licence is to be used only for motorcycles, the rate set under paragraph 2(1)(d) of Schedule 1 to VERA is applicable to the trade licence by virtue of Section 13(3)(a) to VERA. The rate is £66 before the £4 increase now proposed.
10.The changes in rates apply to all vehicle licences taken out on or after 1 April 2010 regardless of the commencement date on the licence.