Another New Road Tax Question - sorry

Another New Road Tax Question - sorry

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graham22

Original Poster:

3,295 posts

206 months

Wednesday 15th October 2014
quotequote all
Situation: Car traded into dealer during September with tax remaining until Feb 2015, not claimed back by previous owner.

V5 returned as vehicle sold to motor trader etc so dealer does not appear as a previous keeper.

Dealer sells car now, does the tax/rfl stay with the car going to the new owner or must the disc be returned for a refund - if it's the latter, who gets the refund? Presume new owner must re-tax??


eta - this is a situation I'm in, looking at a car showing tax, want my facts right before I drive away with no tax/face unexpected £280 bill.

Edited by graham22 on Wednesday 15th October 09:43

Toaster Pilot

14,622 posts

159 months

Wednesday 15th October 2014
quotequote all
Good question I'm keen to hear the answer to, as a trader with a taxed car kicking around since before the change.

confused_buyer

6,658 posts

182 months

Wednesday 15th October 2014
quotequote all
Refund goes to last registered keeper. It will need to be retaxed for a new keeper.

In the case of a car "in the trade" with tax remaining the tax remains valid as long as it was "traded" before 1/10/14 until it is sold.

Disc does not need to be returned anywhere - it no longer has any purpose/value.

B'stard Child

28,470 posts

247 months

Wednesday 15th October 2014
quotequote all
Well it won't be the dealer as they've not been able to claim refunds on VED for a while.

I'd say the date of sale was pre legislation change so the tax stays with the car (part one of the ownership change is sale to dealer)

The bit I'd worry about is if DVLA decide that the tax is void for the new owner.

graham22

Original Poster:

3,295 posts

206 months

Wednesday 15th October 2014
quotequote all
confused_buyer said:
Refund goes to last registered keeper. It will need to be retaxed for a new keeper.

In the case of a car "in the trade" with tax remaining the tax remains valid as long as it was "traded" before 1/10/14 until it is sold.
So test drives/dealer using car can be done without trade plates, the minute it's sold the tax goes back & previous keeper gets an unexpected refund.

Being cynical, I guess if the disc isn't sent back, DVLA won't refund despite new owner paying duplicate tax?

graham22

Original Poster:

3,295 posts

206 months

Wednesday 15th October 2014
quotequote all
B'stard Child said:
Well it won't be the dealer as they've not been able to claim refunds on VED for a while.
Assumed that still applied but didn't know if under any twist of fate the new owner gets it refunded, the previous owner or it just got lost in the system.

confused_buyer

6,658 posts

182 months

Wednesday 15th October 2014
quotequote all
graham22 said:
So test drives/dealer using car can be done without trade plates, the minute it's sold the tax goes back & previous keeper gets an unexpected refund.

Being cynical, I guess if the disc isn't sent back, DVLA won't refund despite new owner paying duplicate tax?
Tax disc goes in bin. Current tax is cancelled from date new keeper becomes keeper on V5.

A taxed car which went into trade before 1/10/14 keeps its tax until it is sold/expires. Any car going "into trade" after 1/10/14 the tax is cancelled from the date on the yellow slip.

graham22

Original Poster:

3,295 posts

206 months

Wednesday 15th October 2014
quotequote all
confused_buyer said:
Tax disc goes in bin. Current tax is cancelled from date new keeper becomes keeper on V5.

A taxed car which went into trade before 1/10/14 keeps its tax until it is sold/expires. Any car going "into trade" after 1/10/14 the tax is cancelled from the date on the yellow slip.
I see that makes sense etc and appreciate the tax disc showing is no longer of relevance. You would think the DVLA would refund the tax once the V5 goes back telling them car sold to a motor trader - could sit on the forecourt for months.

Anyway, thanks for that, another point to take up with dealer.

confused_buyer

6,658 posts

182 months

Wednesday 15th October 2014
quotequote all
graham22 said:
I see that makes sense etc and appreciate the tax disc showing is no longer of relevance. You would think the DVLA would refund the tax once the V5 goes back telling them car sold to a motor trader - could sit on the forecourt for months.
They do. But only since 1/10/14 when the new system came in. Cars which went into trade before 1/10/14 with a tax disc in the window retain their tax until it is sold.

Toaster Pilot

14,622 posts

159 months

Wednesday 15th October 2014
quotequote all
confused_buyer said:
Refund goes to last registered keeper. It will need to be retaxed for a new keeper.

In the case of a car "in the trade" with tax remaining the tax remains valid as long as it was "traded" before 1/10/14 until it is sold.

Disc does not need to be returned anywhere - it no longer has any purpose/value.
Logical and it's how I assumed it was going to work but what of the fact that quite a while ago, DVLA will have written to the previous keeper saying "we recognise that you are no longer the registered keeper/responsible for the vehicle"

confused_buyer

6,658 posts

182 months

Wednesday 15th October 2014
quotequote all
Toaster Pilot said:
Logical and it's how I assumed it was going to work but what of the fact that quite a while ago, DVLA will have written to the previous keeper saying "we recognise that you are no longer the registered keeper/responsible for the vehicle"
Well, as they'll get a cheque for something they've forgotten about I doubt they'll complain too much.

This will only happen for a few months anyway whilst current "in the trade" cars with tax either get sold or the tax expires.

It will annoy a lot of part time traders who used to tax a "in the trade" car and use it whilst trying to sell it as this is no longer possible.

Toaster Pilot

14,622 posts

159 months

Wednesday 15th October 2014
quotequote all
confused_buyer said:
It will annoy a lot of part time traders who used to tax a "in the trade" car and use it whilst trying to sell it as this is no longer possible.
Yep. Hopefully start weeding out the ones that run without trade plates etc though