Changes to Car Tax for the Motor Trade

From the 1 October 2014 tax discs will no longer be issued by the DVLA and vehicles won’t be required to display windscreen tax discs.  Instead, vehicle tax details will be held online by the DVLA. The DVLA will continue to issue vehicle tax reminders to registered vehicle keepers. These changes may impact on your motor trade clients.


The impacts for motor traders are;


1.     the vehicle seller is required to immediately notify DVLA of the change of ownership  - using the V5C Vehicle Registration Certificate

2.     the DVLA must be notified if the vehicle is being SORNed - using the V5C Vehicle Registration Certificate

3.     the vehicle tax isn’t transferable - the seller will automatically be refunded the unexpired tax when they inform DVLA of the vehicle ownership change 

4.     when a vehicle is purchased - due to the fact it will effectively be untaxed - it cannot legally be driven on UK roads unless it is re-taxed by the motor trader, in their own name, or used in accordance with Trade Plate regulations

5.     if a vehicle is untaxed, there’s no need for the vehicle to be added to the motor trader's MID record

6.     if a motor trader taxes a vehicle in their name, they’re responsible for informing DVLA when it is sold. If a motor trader fails to inform DVLA when a vehicle is sold-on, they could be fined by DVLA and still be held liable for the tax due on the vehicle

7.     when a vehicle is sold, it’s then the responsibility of the buyer to immediately purchase vehicle tax, as there is no grace period - using form V5C/2 . 


To assist new vehicle owners, DVLA have set-up a new 24/7 online vehicle tax facility, though vehicle tax can still be purchased via the Post Office.  

Vehicle owners can check the tax status of a vehicle at any time at    


If you have any questions about the car tax changes and the potential impact to your motor traders, please just get in touch with your local Aviva underwriter.

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