Illegal trade plate
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We are in business as
commercial vehicle dealers and hold a trade licence. A few weeks ago our artic was carrying a drawbar trailer to a nearby port for export. It was not taxed but trade plates were displayed. It was stopped by police who said the use of trade plates for this purpose was illegal.
We have now received a demand from the DVLA for back duty at the goods rate. The vehicle was a 38-tonne two-axle tractor with a tandem-axle trailer but the DVLA says it should have been taxed at £5,000 a year. What is your advice?
I A The purposes for which
a trade licence can be used on a vehicle are set out in Regulation 35 of the Road Vehicles (Registration and Licensing) Regulations 1971; the types of goods which can be carried are listed in Regulation 38.
A load consisting of a trailer can be carried on a vehicle for specified purposes. One of these is where the vehicle used under the trade licence is going from the premises of a motor trader to a place from which it is to be transported by train, ship or aircraft, or vice versa.
However, to come within the authorised purpose the vehicle carrying the trailers would itself have to be going for export. Because this was not the case the use of the trade plates was not authorised.
As the use of trade plates was not authorised at the time in question, your vehicle was chargeable with tax at the goods rate. For a 38-tonne tractor with two axles and drawing a two-axled semitrailer the annual rate at the time of the offence was £5,000.
There is a concession in the law for such a vehicle which is used at a lower laden weight and this would normally be available for a 38-tonne two-axled tractor which cannot be legally used at 38 tonnes with a tandemaxle trailer.
Section 16 of the Vehicles Excise and Registration Act 1994 states that if a twoaxled tractor is taxed for use with a three-axled trailer at a rate at least equal to the 33,000kg rate for a two-axled tractor with a two-axled trailer (ie ,f2,450) it can be used with a two-axled trailer without incurring extra tax as long as the total laden weight of the outfit does not exceed 33,000kg.
However, in your case the tractor was not taxed at the rate required so that provision does not apply.
We can seeno way out of paying the back duty.