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NFDA Warns dealers: Big Change Regarding Unexpired Road TaxBack

TaxDisc02As well as the Abolition of tax discs from the first of October this year ‘un-expired road fund tax’ (with or without a tax disc) will have no value and is not transferable to the next owner or user of the vehicle.

This could cause major problems for the smaller dealer who uses part-exchange vehicles as transport without registering in their own name and adding an additional owner. Also for many of the larger dealerships the small portion of un-expired tax is often used to drive the vehicle to auction for disposal or to induce the trade buyers to purchase that vehicle.

From the 1st October the ‘Registered Keeper’ part-exchanging or selling on their vehicle will automatically be sent a refund for the un-expired portion of their tax, thus making the vehicle un-taxed for the new owner/user.

For dealers it means as soon as a vehicle arrives on site as a part-exchange or trade purchase it must be considered untaxed and Trade Plates will be required to move it on the public highway.

Over the transition period, the trade has been granted small dispensation for the Industry; Any trade or part-exchange vehicles that have unexpired tax values taking them past October 1 will still be considered legal, as long as vehicles were put into trade (yellow section of V/5) prior to the 1st October and that exemption will only stay in force until the vehicle is sold to a new owner and then it will need to be taxed, along with a keeper change notified to the DVLA.

For more information contact Stephen Latham on 07515-9752157

Posted by Sue Robinson on 22/08/2014