Vehicle Excise and Registration Act 1994 section 19B

Issue of licences before payment of duty

Section 19B allows the Secretary of State to issue vehicle or trade licences before the full duty has been paid, provided there is an agreement in place for how the duty will be paid, and sets out what happens if the agreed payments are not made.

• The Secretary of State may issue a vehicle licence or trade licence before duty is fully paid, where the licence holder has entered into a payment agreement
• The payment agreement may allow duty to be paid by instalments, and may provide for the licence to cease and future instalments to be cancelled if rebate conditions are met or a trade licence surrender request is received
• Where duty is not paid as agreed under a single-payment arrangement, the Secretary of State may declare the licence void from the date it was originally granted, either immediately by notice or after giving the licence holder a reasonable period to pay
• Where duty is payable by more than one instalment and payments fall behind, the Secretary of State may require all outstanding and future instalments to be paid within a specified period, and if this is not done, may declare the licence void from a specified time