Car tax transferring UK — when ownership of a vehicle changes, specific road tax obligations apply to both the seller and buyer. Here is the complete guide for 2026.
Seller Obligations When Transferring a Vehicle
When you sell your vehicle, you must notify DVLA of the change of keeper immediately. Use the green slip (section 2) from your V5C — give it to the buyer at the time of sale. Alternatively, use the GOV.UK sold vehicle service online. Do not leave this to the buyer — your responsibility ends only when DVLA processes the notification.
What Happens to the Road Tax on Sale
When DVLA processes the change of keeper notification, road tax is automatically cancelled and any full remaining months are refunded to the seller. The buyer cannot use the seller's road tax — they must tax the vehicle in their own name before driving.
Buyer Obligations: Tax Before Driving
When you buy a vehicle, you must tax it in your name before driving on a public road. The vehicle is automatically placed on SORN by DVLA when the change of keeper is processed. To tax, you need your V5C reference number, valid insurance, and a valid MOT if the vehicle is over 3 years.
Private Sale vs Dealer Purchase
For private sales, the seller completes the green slip. For dealer purchases, the dealer typically handles the notification. Either way, both parties should confirm DVLA has processed the transfer — check using the GOV.UK vehicle enquiry tool.
Transferring Within Family
Transferring a vehicle to a family member follows the same rules as a sale. Road tax does not transfer. The new keeper must tax the vehicle. A gift transfer is treated identically to a sale for road tax purposes.
Conclusion
Car tax transferring UK: seller notifies DVLA immediately, buyer taxes before driving. Road tax refund is automatic. GOV.UK sold vehicle service is the fastest notification method.