Car tax trade plates UK — motor traders use trade plates to move vehicles without individual road tax. Here is how trade licences and trade plates work in 2026.
What Are Trade Plates?
Trade plates are number plates issued to motor traders, garage owners, and vehicle manufacturers that allow them to drive vehicles on public roads without each vehicle having its own road tax. The trade plate is attached to the vehicle, and the trade licence covers the road tax for that movement.
Trade Licence Cost and Duration
A trade licence costs £165 for a 12-month period. This covers unlimited use of the trade plates on any vehicle during that period — each vehicle does not need individual road tax as long as it is displaying a valid trade plate. Trade licences can also be purchased for shorter periods at a pro-rata cost.
Who Can Use Trade Plates?
- Motor dealers: Moving vehicles for sale, test drives, and auctions
- Vehicle mechanics: Road testing after repairs
- Vehicle manufacturers: Pre-delivery testing and transport
- Auction houses: Moving vehicles before and after sale
Restrictions on Trade Plate Use
Trade plates cannot be used for general everyday driving by members of the public. They are strictly for motor trade purposes — moving vehicles for commercial reasons. Using a trade plate on your personal car to avoid road tax is illegal and constitutes a serious offence. The trade licence holder is responsible for ensuring correct use.
Insurance for Trade Plate Vehicles
Trade plate users must have appropriate insurance coverage. Motor traders typically have trade plate insurance that covers vehicles displaying the trade plates. This is a separate insurance product from standard vehicle insurance. Personal use of a trade-plated vehicle is typically not covered by trade insurance policies.
Conclusion
Car tax trade plates UK: trade licence at £165/year covers road tax for trade plate use. For motor traders only — not personal use. GOV.UK trade licence details available online.