Selling your car? The road tax rules you should know
Whilst you can sell an untaxed car, this does come with some specific challenges. For example, you can’t leave an untaxed car parked in the street. Neither you nor the new buyer can drive the car until it is taxed, either, because driving an untaxed car is illegal. This means you will likely find selling an untaxed car quite tricky.
How to sell an untaxed car
Since October 2014, road tax in the UK became non-transferable from one owner to the next. This means that when you sell your car, the road tax associated with it doesn’t automatically transfer to the new owner.
There are a few specific steps you should take instead if you want to stay compliant with road tax rules.
Declare the sale
When you go to sell your car, the first thing you should do is let the DVLA (Driver and Vehicle Licensing Agency) know. This is so you can officially transfer ownership and road tax responsibilities to the new owner in the eyes of the law.
Get your road tax refund (if applicable)
Once you’ve let the DVLA know you’re selling your car, they will begin the process of officially transferring ownership. If you have any full months remaining on your tax payment, you will receive a road tax refund.
Note that the refund isn’t based on the remaining days of the month, so use this to time your sale to your advantage.
Can I sell a SORN car?
If your car isn’t in use and is parked away from public roads, you can declare it as SORN - which stands for Statutory Off Road Notification - to indicate that it isn’t intended for road use. This is a popular way of avoiding road tax on an unused vehicle.
Whilst you can sell a car with SORN status, it does come with some awkward challenges.
Firstly, potential buyers won’t be able to test drive the car on any public road, making it difficult for them to assess its condition and suitability. This will ultimately make it hard for you to sell your car at all.
If you do manage to sell your SORN car, it will need to be towed or driven away via a trailer as it can’t be driven until taxed, adding extra hassle (and potential cost!) to the process for both seller and buyer.