When Vans are Used for Private Purposes
Page 67
If you've noticed an error in this article please click here to report it so we can fix it.
I NQUIRIES reaching The Commercial Mow show that there is widespread confusion about the use of goods vehicles for private purposes. The following is the law on the subject, as explained by the Ministry of Transport: Motor-vehicle taxation is governed by the Vehicles (Excise) Act, 1949, section 5 of which provides, in effect. that a vehicle which is constructed or adapted for use and used for the conveyance of goods or burden of any description, whether in the course of trade or other, wise. is taxable as a goods vehicle on the basis of its unladen weight.
This section is, however, modified by section 7 (2) of the Finance Act. 1952, which provides that a vehicle which is so constructed or adapted and which exceeds 12 cwt. in weight unladen shall be taxable as a goods vehicle only if it is used to convey goods or burden for hire or reward or for or in connection with a trade or business.
A van is generally regarded as a vehicle constructed for the conveyance of goods or burden, so that its classification for taxation purposes depends
upon its use. If it is used to convey goods or burden for hire or reward, or for or in connection with .atrade or business, it is taxable at the " goods" rateof duty on the basis of its unladen weight.
If it is used to convey goods for private purposes only. it is taxable at the " private" rate of duty in the same way as a private car. if it is used for both purposes. it is taxable at either the "goods" rate or the " private " rate, whichever is the higher.
As the "goods" rate invariably equals or exceeds the " private" rate in the case of vehicles which exceed 12 cwt. unladen, such a vehicle taxed at the " goods " rate may be used for private purposes without incurring liability to additional duty. The vehicle, if used for business purposes, however, may also require a carrier's licence.
As, therefore, the classification of the vehicle for taxation purposes depends upon the uses to which it will be put, the operator would be well advised to consult hit local taxation authority, who would supply the necessary information.