A licence, to be known as a " taxi driver's licence " or, as the case may be, a " private hire car driver's licence ", shall, subject to subsection (2) below, be required for driving or otherwise having charge of a taxi or private hire car.

A private hire car driver's licence shall not be required by the holder of a taxi driver's licence for driving or otherwise having charge of a private hire car whilst in operation as such.

A licensing authority shall not grant a licence to any person under this section unless that person has held, during any continuous period of 12 months prior to the date of his application, a licence authorising him to drive a motor car issued under Part III of the [1972 c. 20.] Road Traffic Act 1972 or a licence which would at the time of his application entitle him to such a licence without taking a test, not being a provisional licence.

A licensing authority may, at any time, for the purposes of satisfying themselves that he is physically fit to drive a taxi or, as the case may be, private hire car, require an applicant for or holder of a taxi driver's licence or private hire car driver's licence to submit to medical examination, at their expense, by a medical practitioner nominated by them.

A licensing authority may require an applicant for a taxi driver's licence to take a test of his knowledge of the area to which the licence is to relate, of the layout of roads in that area and such other matters relating to the operation of a taxi as the authority consider desirable, and the authority may refuse to grant a licence to a person who does not satisfy them that he has adequate knowledge of any of these matters.

If a person holding a licence under this section ceases for any reason to be authorised by law to drive on a road (within the meaning of the [1972 c. 20.] Road Traffic Act 1972) the vehicle to which the licence relates, the licence shall cease to have effect.