Temporary transfer of vehicles between operator licences
Published 11 May 2022
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This publication is available at https://www.gov.uk/government/publications/support-for-specialist-events-hauliers-working-on-cross-border-tours-temporary-transfer-of-vehicles-between-operator-licences/temporary-transfer-of-vehicles-between-operator-licences
Who is likely to be affected
Specialist events hauliers who are a sub-set of the haulage industry. These hauliers use specialised heavy goods vehicles (HGVs) to carry equipment for cultural events such as concert tours, art exhibitions and sporting events, in both the UK and internationally.
General description of the measure
UK specialist events hauliers provide services for concerts and other tours, often with multiple stops. Cabotage is the transport of goods between two places in the same country by a transport operator from another country for the purposes of hire and reward. It is restricted in both the UK and abroad.
This measure will allow specialist haulage operators, with an established base outside Great Britain (England, Scotland and Wales) alongside their existing Great Britain base, to temporarily transfer their vehicles between their European Union (EU) and Great Britain operator licences without needing to change vehicles at the border, or have their journeys limited by current cabotage rules.
This measure would also apply to international bases outside the EU and be subject to their respective operator licensing and market access arrangements.
Under current rules, any vehicle registered outside of the UK/Great Britain being transferred onto a Great Britain operator licence would have to be registered in Great Britain and pay Vehicle Excise Duty (VED). As a solution, this dual registration measure would exempt these hauliers from paying VED on a vehicle registered outside the UK/Great Britain whilst the vehicle is temporarily operating on a Great Britain operator licence.
Policy objective
This measure will facilitate cross-border movements between the UK and the EU or another third-country for specialist events haulage operators involved in cultural event tours, by allowing them to temporarily transfer their internationally registered heavy HGVs onto a Great Britain operator licence whilst in the UK without paying VED, preventing the need to change vehicles at the UK border.
To benefit from the measure operators will also need to have a Great Britain operating licence and maintain a base in the Great Britain.
The scope of the policy is Great Britain wide because operator licensing is devolved in Northern Ireland. However, once registered to a Great Britain operating licence vehicles will be able to take part in tours across the UK.
The Department for Transport will commit to discussing this with the Northern Ireland Department for Infrastructure to explore whether a similar measure would be welcomed or needed.
Background to the measure
From 4 to 18 February 2022 Department for Transport consulted on the dual registration proposal, including a Vehicle Excise Duty (VED) exemption for this sub-sector.
The consultation received 29 responses, and overall positive support. The government confirmed these changes through the publication of the consultation response on 6 May 2022 which can be found here.
Detailed proposal
Operative date
The changes are expected to come into force from August 2022.
Current law
Article 5 of the Motor Vehicles (International Circulation) Order 1975 exempts from excise duty certain vehicles brought temporarily into the UK. This includes exemptions from paying VED for goods vehicles imported temporarily for the purposes of cabotage.
The definition of the exemptions from VED are defined with reference to existing cabotage rights.
Proposed revisions
This instrument is being made using powers provided by section 1(1), (2)(b) and (4) of the Motor Vehicles (International Circulation) Act 1952.
This instrument will make amendments to the Motor Vehicles (International Circulation) Order 1975.
The scope of this SI may apply to all international touring operators with Great Britain operator licences.
This SI mitigates operational issues by exempting affected vehicles from paying VED when they are temporarily transferred onto a Great Britain operator licence while transporting equipment used for cultural events in Great Britain.
Summary of impacts
Exchequer impact (£million)
| 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 |
|---|---|---|---|---|---|
| Neg | Neg | Neg | Neg | Neg | Neg |
This measure is expected to have a negligible Exchequer impact.
Economic impact
This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
This measure has no impact on individuals as it relates to the transport of goods for the purpose of specialist cultural events.
This measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be equalities impacts in relation to any groups sharing protected characteristics.
Impact on business including civil society organisations
This measure is expected to have a positive impact on specialist haulage operators of specialist HGVs that transport equipment across the UK and internationally for cultural events tours.
Up to 50 specialist events hauliers, who in total have up to 1000 vehicles, may decide to use this measure.
One-off costs may include familiarisation with and setting up of the dual registration process together with updating staff on requirements. Continuing costs may include costs associated with maintaining business records as well as providing HMRC with more data on their operations.
Potential ongoing savings include the exemption from annual VED on each vehicle, as well as allowing for greater ease of operations on trips between the UK and internationally.
There is expected to be no impact on civil society organisations.
Operational impact (£million) (HMRC or other)
This measure is expected to have a negligible operational impact.
Other impacts
Other impacts, including air quality and climate change impacts, have been considered and no significant impacts have been identified.
Monitoring and evaluation
The measure will be kept under review by Department for Transport and HM Treasury through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, contact the Energy and Transport Taxes Team at the following email address: [email protected]
Declaration
Helen Whately MP, Exchequer Secretary to the Treasury, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.