Section 130 of the Finance Act 1992 as amended by section 53 of the Finance Act 2017 provides that from 31 July 2018 N1 vehicles with 4 or more seats will be liable to VRT at the Category A rate except where the vehicle has a BE bodywork code. The BE bodywork code is assigned at type approval stage to N1 vehicles where the vehicle does not exceed 3,500 kilograms, and where the seating positions and the cargo area of the vehicle are not located in a single compartment. N1 vehicles with a BE bodywork code and N1 vehicles with 3 or fewer seats will continue to benefit from the Category B rate of VRT. These provisions will ensure that the lower rate of VRT will continue to apply to vehicles that are designed principally for the carriage of goods.
These rules do not exclude the installation of rear seating in 4x4 vehicles but the VRT category may change where seating is installed. I have no plans to review these provisions.