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To qualify for
the agricultural tax class a vehicle must meet the
definition within
VERA of either an agricultural tractor, an off road
tractor, a light
agricultural vehicle or an agricultural engine.
An agricultural
tractor is used on public roads solely for purposes
relating to
agriculture, horticulture, forestry or
a) cutting verges
bordering public roads;
b) cutting hedges
or trees bordering public roads or bordering verges
which border
public roads.
Agricultural
tractors are restricted in what they haul whilst
travelling along
the public road.
An off road
tractor means a tractor which is not an agricultural
tractor and which
is designed and constructed primarily for use
otherwise than on
road, and is incapable by reason of its construction
of exceeding a
speed of twenty five miles per hour on the level under
its own power.
A light
agricultural vehicle means a vehicle which has a revenue weight
not exceeding
1,000kg, is designed and constructed so as to seat only
one driver, is
designed and constructed for use otherwise than on roads
and is used
solely for purposes relating to agriculture, horticulture or
forestry.
An agricultural
engine is taken to be a machine specially designed or
permanently converted
to perform an agricultural operation on the land
and which is so
constructed that it cannot be used on roads for any
purpose other
than proceeding to and from the site of agricultural
operation. There
must be also be something inherently agricultural about
the vehicle
itself and not just its use. Vehicles such as combine
harvesters, crop
sprayers and self propelled manure spreaders are
clearly vehicles
designed specifically for agricultural operations and
probably cannot
be used for much else.
The limited use
taxation class applies to any vehicle that is used
solely for
agricultural horticultural or forestry purposes and where use
on the road does
not exceed 1.5km each trip between different areas of
land occupied by
the same person.
Material handlers
can be licensed in a number of different taxation
classes. To
license in the Agricultural Machine tax class a vehicle must
meet the
definition within VERA of either an agricultural tractor, an
off road tractor,
a light agricultural vehicle or an agricultural
engine. Material
handlers do not meet any of these definitions.
In the 2001
Budget, when VED for agricultural vehicles was abolished,
the Chancellor
gave the farmers and agricultural machine industry a
commitment to
review the position for agricultural vehicles that caused
classification
difficulties. The culmination of this review resulted in
an announcement
by the Chancellor in November 2001 that with effect from
1 January 2002 an additional
category of vehicle would fall within the
agricultural
machine taxation class and would attract a nil rate of
duty. To qualify
for this exemption vehicles have to meet the following
criteria:
· Designed for
off road use; and
· Designed to
lift and load; and
· Used solely in
connection with agriculture, horticulture or
forestry.
This commitment
was not put into legislation but has been administered
on an
extra-statutory basis since January 2002.
At that time DVLA
consulted with the National Farmers Union, the
Agricultural
Engineers Association and agricultural manufacturers to
notify them of
these changes. Infor
Prior to these
changes material handlers would have been licensed in
the Special
Vehicle, Heavy Goods Vehicle (HGV) or Private Light Goods
(PLG) taxation
classes depending upon their construction and use.