Temporary vehicles — hire cars, loan vehicles, and courtesy cars — operate under the same road tax rules as any other registered vehicle. Understanding who is responsible for tax and what happens to tax when a vehicle changes hands temporarily is important for anyone lending or borrowing a vehicle.
Hire Cars and Road Tax
Hire vehicles are the responsibility of the hire company. The vehicle should be taxed continuously by the rental company — they cannot legally rent an untaxed vehicle. When you hire a car, road tax is included in the rental cost. You do not need to separately tax the vehicle. If the hire company fails to tax the vehicle and you are stopped, the responsibility ultimately falls on the keeper — which is the hire company — but you may face inconvenience while the matter is resolved.
Borrowing a Friend or Family Vehicle
When you borrow a vehicle from a friend or family member, the vehicle must be taxed by its registered keeper. You cannot legally drive an untaxed vehicle, even if you plan to pay the tax yourself. The V5C keeper should either tax the vehicle online before you drive it, or you should ask the keeper to add you as a named driver on their policy and confirm the vehicle is taxed. Driving without tax is an offence — it does not matter that you are not the owner.
Courtesy Cars from Garages
Garages providing courtesy cars during repairs must ensure those vehicles are taxed. A courtesy car is typically registered to the garage and kept taxed by them. You should not need to arrange road tax for a courtesy car — it is the garage's responsibility. If a courtesy car is not taxed, the garage is liable for the offence, not you as the temporary driver, but you should not drive an obviously untaxed vehicle regardless.
Vehicle SORN During Repair
If a vehicle is off the road for repair, the keeper can declare a SORN for the repair period. During a SORN, the vehicle must be kept off public roads. If a courtesy car is provided, it should already be taxed. If the garage lends you your own vehicle back temporarily while parts arrive, a SORN would be cancelled — and the vehicle would need to be re-taxed before it can legally be driven again.
Transferring Tax Between Vehicles
Road tax cannot be transferred between vehicles. If you sell or scrap one vehicle and buy another, you cannot carry over the remaining tax period. The tax on the old vehicle ends when it is sold, transferred, or scrapped — and a refund may be claimed for any full months remaining. The new vehicle must be taxed separately. Some dealers offer to handle the tax transfer, but the legal liability remains with the keeper.