Private number plates — also called personalised or cherished plates — are a popular way to personalise a vehicle. Understanding how they interact with road tax helps you retain, transfer or sell private plates correctly.
Private Plates and VED Are Separate
Road tax is tied to the vehicle — the V5C records the vehicle identification number, not the registration mark. A private number plate does not affect the vehicle's VED rate or its tax classification. If you put a private plate on a high-CO2 car, the car still costs £190 per year in standard road tax. The plate and the tax are entirely independent — one is identity, the other is a charge on the vehicle.
Retaining a Private Plate When Selling the Car
To keep a private number plate when selling the vehicle, you must apply to DVLA to retain the plate before the sale completes. Use the retain a registration number service on GOV.UK — you will need the V5C and to pay a retention fee. DVLA will send you a replacement V5C showing the original registration restored and a certificate of retention for the private plate. Once retained, you can assign the plate to another vehicle at any time.
Putting a Private Plate on a New Vehicle
To assign a retained private plate to a new vehicle, you apply to DVLA using the certificate of retention and the new vehicle's V5C. The assignment fee is currently around £80-£150 depending on the plate type. The vehicle must be registered in your name before you can assign the plate to it. Both vehicles involved — the one you are taking the plate from and the one you are putting it on — must be taxed or have a SORN.
Selling Private Plates Separately
You can sell a retained private number plate independently of any vehicle. The DVLA's automated registration marker transfer system allows private plate sales without the physical V5C, using the retention certificate. Prices for private plates range from a few hundred pounds for common formats to tens of thousands for highly sought-after number plates. Road tax is not involved in the transaction — only the plate sale value.
Tax Implications of Private Plate Sales
If you sell a private plate for more than you paid for it, you may have a capital gain for tax purposes. However, private plates held as personal effects are typically not subject to Capital Gains Tax when sold — HMRC generally treats cherished number plates as personal belongings. If you are trading plates as a business, different rules apply. Consult HMRC or a tax adviser if you deal in private plates commercially.