The National Traction Engine Trust

Discontinuance of the Tax Disc in October 2014

DVLA have currently not reacted to FBHVC comments on their proposal that on any sale of a vehicle with an unexpired tax disc, the VED registration expires and a new one has to be sought.

The proposal says the existing VED licence (even if it is for a Historic Vehicle and no actual VED is payable) will expire when the Secretary of State is notified of the change of keeper (i.e. when DVLA receives the V5C in Swansea). Neither buyer nor seller will know exactly when that is.

But the seller, because of Continuous Insurance, will need to keep his insurance in place until he is sure the licence has lapsed. The buyer will presumably not be able to get a new licence until the old one has lapsed but will need to have put insurance in place to use the vehicle after sale.

Perhaps worse, on a vehicle in respect of which VED is payable, although the seller will be able to claim a rebate on any existing VED, he will not get refund of that part of the month’s VED in which the sale occurs. Meanwhile the buyer will immediately have to apply for a licence. This seems to have the effect that some VED will be paid twice over. This looks wrong in principle.

The Federation is also concerned that DVLA do not appear to be planning for an owner to possess any actual evidence of his own. DVLA seem to consider that being on their database is enough. FBHVC are concerned that others, especially abroad, may wish to see some evidence that the vehicle is licensed, even if only a print of a computer record, and will not be willing to simply be told to visit the DVLA website.

DVLA have not to date explained how, if at all, these problems are to be dealt with. The Federation will keep asking.

16 Jun 2014