Before October 2014, a car's tax disc stayed with the car when it was sold. That's no longer the case: vehicle tax doesn't transfer to a new keeper. Many buyers still don't know this and drive away untaxed without realising.
What happens when a car is sold
- When the seller tells DVLA the car has been sold, the seller's tax ends.
- DVLA automatically refunds the seller for any full months left.
- If the seller paid by Direct Debit, it's cancelled automatically.
- The buyer must tax the car in their own name before driving it.
How to tax a car you've just bought
- Get the new keeper slip (V5C/2) from the seller. It has the reference number you need.
- Tax the car online on GOV.UK, by phone or at a Post Office that deals with vehicle tax, using that reference number.
- The tax starts straight away, so you can drive the car home legally (as long as it has a valid MOT and you're insured).
Buying from a dealer? Many dealers tax the car for you before handover, but check.
Driving without tax
An untaxed car on a public road can lead to a fine, and it can be clamped or impounded. Enforcement is automatic, using the DVLA record, so it doesn't matter that the seller's tax had months left.
How much will it cost?
The rate depends on when the car was first registered, its CO2 emissions or engine size, and for newer cars its list price. A road tax check shows the tax band and cost, and our car tax guide explains how the bands work. You can check whether a car is currently taxed with a tax check.
If you're selling
Tell DVLA about the sale straight away, online or using the V5C, and give the buyer the V5C/2. You'll get your refund automatically. See how to tell DVLA you've sold a vehicle.
Key points
- Vehicle tax ends when a car is sold; the seller gets a refund.
- Tax the car with the V5C/2 reference number before you drive it.
- For cars that are off the road, see SORN rules.
To see whether a car is taxed right now, use a car tax check: our free vehicle tax check shows the tax status and due date, or SORN, for any registration.