What are the changes?
The new car tax (vehicle licensing) rules mean that from 1 January 2004 the registered keeper of a vehicle (the person named on DVLA's record) remains responsible for taxing a vehicle (or making a SORN declaration) until that liability is formally transferred to a new keeper. To avoid liability for taxing it, the keeper needs to inform DVLA when the vehicle is off the road, or has been sold, transferred, scrapped or exported. Once DVLA has been notified about a sale/transfer or that the vehicle is off-road we will issue an acknowledgement letter, which should be kept as proof that the vehicle record has been changed.

What happens if you do not re-license your vehicle?

The new rules mean that keepers who fail to re-license their vehicle (or declare SORN) will incur an automatic penalty of £80 (reduced to £40 if paid within 28 days). Determined offenders will be faced with prosecution and could be fined a minimum £1000.

DVLA will carry out a computer check each month to identify those vehicles without a valid tax disc. Although the new rules mean that it is no longer necessary for the vehicle to be seen on a public road before a penalty is issued current on-road enforcement will still continue.

Related Links:

• DVLA new car tax rules