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For VED purposes, a recovery vehicle is a vehicle which is constructed or permanently adapted primarily for one or more of the purposes of lifting, towing and transporting a disabled vehicle. The High Court has ruled that a disabled vehicle is "not only a vehicle which suffers from a significant disability but is a vehicle which has broken down because of that disability". It has also ruled that "disabled vehicle" does not include a scrap vehicle. Licences for recovery vehicles are not confined to the motor trade but can be taken out by anyone who has a recovery vehicle. A licence costs £160 for a vehicle over 3.5 tonnes but not over 12 tonnes revenue weight, £480 for a vehicle over 12 tonnes but not over 25 tonnes; and £800 for a vehicle over 25 tonnes. Revenue weight is a vehicle's plated gross weight. A recovery vehicle cannot be used under a trade licence for recovery work but it can be used under a trade licence for any of the authorised purposes. A vehicle is not regarded as a recovery vehicle at any time it recovers more than two vehicles at one time or is used for a purpose other than:
a. the recovery of a disabled vehicle;
b. removing a disabled vehicle from the place of breakdown to a place of repair or scrapping;
c. removing a disabled vehicle from repair premises to other premises for repair or scrapping;
d. carrying fuel for its propulsion or tools and other articles required for the operation of, or in connection with, its recovery equipment,
e. carrying the driver or passenger of a disabled vehicle, and his personal effects, from the place at which the vehicle is to be repaired or scrapped to his original destination;
f. removing a vehicle from a road, at the request of police or a local authority, under their statutory powers, to a place they nominate,
g. going to a place to be available for the recovery or removal of a disabled vehicle from the place it become disabled and remaining temporarily there;
h. returning from a place where the vehicle has been available for use, from recovering a disabled vehicle or from a place where the disabled vehicle has been removed for repair or scrapping.
Disregarded for the purposes of paragraphs (a) and (b) above are
(i) the carriage or persons or goods conveyed in a vehicle immediately before it become disabled,
(ii) repairing a disabled vehicle at the place where it became disabled or to which it had been taken for safety, and
(iii) drawing or carrying a trailer which was being drawn or carried by a vehicle before it become disabled.
A recovery vehicle, as defined in the Vehicle Excise and Registration Act 1994 (above) is exempt from operator licencing. A vehicle is exempt from the EC hours and records law if it is a "specialised breakdown vehicle" The European Court has defined it as "a vehicle whose construction, fitments and other permanent characteristics are such that it will be mainly used for removing vehicles that have recently been involved in on accident or have broken down for another reason". It is not specifically exempt from the British hours and records law but, depending on its use, may come within one of the general exemptions. Large goods vehicle driver licensing does not apply to:
1. a vehicle fitted with apparatus for lifting a vehicle partly from the ground and drawing it when so raised and which is used solely for dealing with disabled vehicles; is not used to carry any load other than a disabled vehicle and articles required for the apparatus or for dealing with disabled vehicles; and is not over 3.05 tonnes unladen weight or
2. a rigid vehicle not over 10.2 tonnes laden weight used by the holder of a PSV operator's licence and used for going to or from a place to assist a disabled or damaged passenger vehicle (PCV) or giving assistance to or moving a disabled PCV or moving a damaged vehicle. A recovery vehicle is exempt plating and testing if it comes within the definition of a breakdown vehicle, which is a motor vehicle
a. on which is permanently mounted apparatus designed for raising one disabled vehicle partly from ground and for drawing that vehicle when so raised, and
b. which is not equipped to carry any other load other than articles required for the operation of, or in connection with, that apparatus or for repairing disabled vehicles.
A trade licence is a concession available to a motor trader or vehicle tester to enable him to use, on a road repairable at public expense, a motor vehicle which is (a) not Licensed or (b) not licensed at the correct rate of duty, without contravening the legal requirement that a vehicle licence be in force for the vehicle. A pair of trade plates is issued with the trade licence for display on the front and rear of a vehicle and they can be transferred from one vehicle to another.
They are issued under Section 11 of the Vehicle Excise and Registration Act 1994 and a person may hold more than one trade licence. The licence and trade plates can be used only for a business purpose and one which is authorised by Part V of the Road Vehicles (Registration and Licensing) Regulations 1971. Many operators and drivers believe that the use of trade plates on a vehicle provides exemption from many legal requirements. That is not the case. The only blanket exemptions for a vehicle used under a trade licence are from operators' licensing and, if used unladen, from plating and testing. A, trade licence gives no exemption itself from drivers' hours and tachograph rules or from LGV driver licensing requirements but the vehicle driven could come within a general exemption contained within these rules according to the type of vehicle or its use at the time.
A motor trader must not use a motor vehicle under a trade licence for any purpose other than a business purpose and an authorised purpose.
A business purpose is one:
1. connected with his business as a manufacturer or repairer of or dealer in mechanically propelled vehicles;
2. connected with his business as a manufacturer or repairer of or dealer in trailers carried on in conjunction with his business as a motor trader; or
3. connected with his business of modifying vehicles (by fitting accessories or otherwise) or valeting vehicles.
An authorised purpose is:
(a) test or trial of the vehicle or its accessories or equipment in the ordinary course of construction, modification or repair or after their completion.
(b) going to or or from a public weighbridge for finding the vehicle's unladen weight or going to a place of registration or inspection by a person acting for the Secretary of State;
(c) test or trial of the vehicle for the benefit of a prospective purchaser, or going to or from such test or trial;
(d) test or trial of the vehicle for the benefit of a person interested in promoting publicity about it, or going to or from such test or trial;
(e) delivering the vehicle to the place where the purchaser intends to keep it,
(f) demonstrating the operation of the vehicle, its accessories or equipment when being handed over to the purchaser;
(g) (i) delivering the vehicle from one part of his premises to another part of his premises,
(ii) delivering it to or from his premises to the premises of, or between parts of the premises of, another motor trader, or
(iii) removing it from the premises of another motor trader direct to his own premises;
(h) going to, or returning from, a workshop in which a body or a special type of equipment or accessory is to be, or has been, fitted to the vehicle or in which it is to be, or has been, painted, valeted or repaired;
(i) going from the premises of a motor trader to a place where the vehicle is to be transported by train, ship or aircraft, or going to the premises of a motor trader from a place to which it has been so transported;
(j) going to or returning from any garage, auction room or other place at which vehicles are usually stored or usually or periodically offered for sale and at which the vehicle is to be or has been stored or offered for sale;
(k) going to or returning from a place where the vehicle is to be or has been tested or going to a place where it is to be broken up or dismantled.
In (a) to (k) above, a motor vehicle which draws a trailer is deemed to be a single vehicle. This means that if the trailer comes within one of these purposes the motor vehicle does too. A motor vehicle manufacturer who keeps a motor vehicle for research and development can use it on a road under a trade licence for research and development purposes only. A vehicle in his temporary possession can be used for purposes a. to k.
A vehicle tester can use a trade licence only for testing motor vehicles and trailers, or their accessories and equipment, in the course of his business as a vehicle tester.
A motor trader may not carry goods on a vehicle used under a trade licence except the following types of goods and only when the vehicle is used for the authorised purposes specified:
1. a load for testing or demonstrating the vehicle, its accessories or equipment and which is returned to the place of loading (except when demonstrating its equipment, in case of accident or if the load consists of water, fertiliser or refuse) when used within (a), (c), (d) or (f) above;
2. a vehicle used or to be used for travel from or to the place of collection or delivery when carried by a vehicle being delivered or collected within (e) to (j) above,
3. a load built in as part of the vehicle or permanently attached to it,
4. parts, accessories or equipment designed to be fitted to the vehicle and tools for fitting them when used within (g), (h) or (i) above,
5. a trailer when the carrying vehicle is used within (e), (h) or (i) above.
A motor vehicle manufacturer or vehicle tester can carry in a vehicle only (a) a load for testing the vehicle, its accessories and equipment and which is returned to the place of loading without having been removed, unless it is removed in testing or in case of accident or (b) a load built in as part of the vehicle or permanently attached to it. For the purposes of the restrictions on carrying goods, an articulated vehicle is deemed to be a single vehicle.
The holder of a trade licence must not use a vehicle under the licence to carry a person on the vehicle who is not carried in connection with the authorised purpose.
A trade licence can be held by: (a) a motor trader, for motor vehicles from time to time temporarily in his possession in the course of his business as a motor trader. A motor trader is (1) a manufacturer or repairer of, or dealer in, motor vehicles; (ii) a person whose business is wholly or mainly in collecting and delivering motor vehicles; (iii) a person whose business is that of modifying vehicles (whether by fitting accessories or otherwise) before the vehicle's first UK registration; or (iv) a person whose business is valeting vehicles. (b) a vehicle tester, for motor vehicles submitted to him for testing in the course of his vehicle-testing business. A vehicle tester is a person, other than a motor trader, whose business is to regularly test, on roads, motor vehicles belonging to other people; (c) a motor trader who is a manufacturer of motor vehicles, for vehicles in his possession as a motor trader; for vehicles kept and used by him for research and development in the course of his business as a manufacturer, including other manufacturers' vehicles submitted for road tests. A trade licence cannot be held by a person whose business is solely to do with trailers.
A person who wishes to obtain a trade licence for the first time should apply to the nearest Vehicle Registration Office on Form VTL 301. The applicant has to give information about the type of motor trade business he is engaged in, how many staff he employs and the number of motor vehicles he handles. A person who holds a licence and who applies for a renewal or another licence should apply on Form VTL 305 and simply make a declaration that there has been no change in his business since his last application for a trade licence. An applicant who is refused a trade licence can, within 28 days of the refusal, request the Secretary of State for Transport, Great Minster House, 76 Marsham Street, London SW1 4DR, to review the decision. He must comply with the request and consider any written representations made by the applicant within the 28 day period.
A trade licence taken out by a newcomer to the motor trade is normally in force for six months and expires on June 30 or December 31. A person who is in the motor trade can take out a licence for a calendar year or for a period of six months commencing on January 1 or July 1, but a licence taken out by a person in the motor trade who does not hold an existing trade licence can be restricted to six months. The rate of duty for an annual licence is £155 and for a six-month licence is £85.25.
Not more than one motor vehicle may be used under a trade licence at one time. A trade licence must not be used on a vehicle for a purpose other than an authorised purpose -see accompanying table. A motor vehicle cannot be kept on a road under a trade licence if it is not being used on the road. The Act states that a person keeps a vehicle on a road if he causes it to be there for any period, however short, when it is not in use there. This means a vehicle cannot be parked on a road under a trade licence unless it is being used for an authorised purpose at that time. A person who is not the trade licence holder must not use a vehicle on a road under the licence, but a person may, with the consent of the licence holder, drive the vehicle when it is being used for an authorised purpose and by the licence holder.
When a licence is granted the holder is issued with two trade plates-one to which the licence is fixed-which remain the property of the Secretary of State. They must be returned if the person to whom they are issued ceases to be the holder of a trade licence or ceases to be a motor trader or vehicle tester. If a trade plate is lost, stolen, destroyed or materially damaged the licence holder must apply for a replacement set of plates. On receiving the plates in possession of the licence holder and a fee of £13.50 the Secretary of State will issue a new set of plates. If the only part of the trade plate affected is the means of fixing the licence to the plate the licence holder must apply for a replacement means of fixing and this costs £2. If the Secretary of State is satisfied a plate has become illegible or its colour altered due to no fault of the licence holder a replacement is free. If a lost trade plate is subsequently found the licence holder must, if it is in his possession, return it to the Secretary of State. If not in his possession he must take reasonable steps to obtain possession of it and return it to the Secretary of State but if possession is not obtained he must notify the Secretary of State. A person must not alter, deface, mutilate or add anything to a trade plate or display on a motor vehicle a trade plate which has been so treated or which has become illegible or the colour altered by fading. Anything which could be mistaken for a trade plate must not be exhibited on a vehicle.
When a vehicle is used under a trade licence it must exhibit trade plates at the front and rear in the same way as a registration plate. The plate containing the licence must be at the front of the vehicle so that the licence is clearly visible at all times in daylight.
If the holder of a trade licence uses the licence (a) on more than one vehicle at one time, (b) on a vehicle for an unauthorised purpose, or (c) to keep a vehicle on a road when it is not being used, he is liable to an excise penalty up to £1,000 or an excise penalty up to five times the amount of excise duty changeable on the vehicle, whichever is the greater. Proceedings for such an offence may only be instituted in England and Wales by the Secretary of State or by police with the approval of the Secretary of State. In Scotland, proceedings may be instituted only by the Secretary of State. Proceedings con be brought within six months of sufficient evidence of the offence coming to the knowledge of the prosecutor but proceedings cannot be instituted more than three years after the offence. In any proceedings the burden of proof as to the number of motor vehicles used or the purpose for which a motor vehicle is used lies on the defendant.