Does this section also give relief?
SECTION 104.
Question proposed: "That section 104 stand part of the Bill."
The section provides for two amendments to section 20 of the Finance (No. 2) Act, 1992. First, where a vehicle is registered within the last seven working days of a month and a road tax application is made in the following month because the vehicle owner has not had the use of the vehicle and the vehicle was not used in a public place until then, the vehicle licence tax disc will be effective from the beginning of the month of licensing rather than, as at present, from the beginning of the month of registration. Second, where there is a prolonged delay between the registration of a vehicle and subsequent licensing, the vehicle licence tax disc shall be effective from the beginning of the month of licensing provided certain conditions are complied with and on payment of a non-refundable fee of £20 to the licensing authority.
What is the purpose of the second part?
It gives an extra month. The license would run from the time one starts to use a car.
What about a new car?
The first amendment deals with new cars and the second one effectively deals with second hand cars.
It is a sensible amendment. Often people might have a car ordered but they might not receive it until two or three days before the end of the month. When that happens they are obliged to tax the car for that month if they wish to use it on the road. This allows a few days grace to tax it from the following month. That is sensible. It will ensure that people will buy cars right up to the end of the month without being penalised through road tax.
Can the car be used during those last couple of days? That is the point.
Question put and agreed to.
Chairman
I thank the Members for their co-operation. We have concluded the business ordered for today. We will deal with sections 105 to 151 between 11 a.m. and 1.30 p.m. tomorrow and sections 152 to 159 and the Schedules between 2.30 p.m. and 6 p.m. tomorrow afternoon.
The Select Committee adjourned at 5.47 p.m. until 11 a.m. on Thursday, 11 May 1995.