So You’ve Bought a Used Car; Now What About the Tax?
When you buy a used car in the UK, the vehicle tax (formerly known as road tax) doesn’t come with it.
You’ll need to register the vehicle in your name and pay for tax afresh—even if the car was taxed just yesterday.
Whether you’re buying from a private seller or dealership, understanding how to transfer vehicle tax is key to avoiding fines or confusion down the line.
Do You Need to Transfer or Reapply for Vehicle Tax?
You don’t “transfer” car tax in the traditional sense.
In the UK, vehicle tax is automatically cancelled when a car changes ownership.
That means the buyer must tax the vehicle before driving it, even if it’s already taxed under the previous owner.
The seller receives a refund for any remaining full months, and you start from scratch. No overlap, no carry-over.
How to Tax the Vehicle as the New Owner
You’ll need one of the following:
- 11-digit reference number from the V5C/2 (new keeper slip), if buying privately
- 12-digit reference number from a new V5C (logbook), if buying from a dealer
Then visit the DVLA’s vehicle tax website.
It takes under 5 minutes if you have your payment details ready.
You can tax it for 6 or 12 months and choose to pay via direct debit.
What About SORN or Untaxed Vehicles?
If the seller declared a SORN (Statutory Off Road Notification) or the car is currently untaxed, you still need to tax it before driving.
SORN doesn’t carry over either.
Buying a used car with SORN?
Arrange insurance and tax before it touches the road—or face fines from ANPR cameras or roadside checks.
What Happens if You Forget?
The DVLA doesn’t mess around. Driving an untaxed vehicle can lead to:
- £80–£1,000 penalty fines
- Clamping or seizure of your car
- No ability to claim the previous owner’s tax coverage
Don’t risk it. Tax your car before that first drive.
Buying from a Dealer vs. Private Seller: Key Differences
- Private Seller: You’ll receive the green V5C/2 slip, and it’s your job to tax it online immediately.
- Dealer: They may help you tax the car before handover using the new V5C, but you’re still responsible for making sure it’s taxed before leaving the forecourt.
In both cases, make sure insurance is in place first—insurance is required before you can legally tax a car.
Tips to Stay on the Right Side of the DVLA
- Always check tax status online via GOV.UK before buying
- Ask for the V5C/2 if buying privately—it’s your tax key.
- Get insurance sorted early so there’s no delay in taxation.
- Don’t assume the dealer will handle that, —even if they say they will
- Set up Direct Debit to avoid missing future renewal dates.
Also Read: The only brand new cars you’ll nee under £15,000 when it comes value for money!
Some Doubts You May Have
Can I drive the car home if it was already taxed by the previous owner?
No. Vehicle tax is cancelled as soon as ownership changes. You must tax it in your name before driving.
Can I transfer car tax to my spouse or family member?
No. Car tax is non-transferable, even between family members. Every new keeper must tax the car themselves.
Do I get a grace period after buying a used car?
There’s no grace period. The car must be taxed and insured before you drive it—even if it’s just around the corner.
What if I don’t have the V5C or green slip yet?
You’ll need to apply for a new V5C using form V62, which takes longer. Avoid buying without paperwork unless you’re confident in the seller.
Do dealers always tax the car for me?
Not always. Some do, but you’re legally responsible for making sure the car is taxed before you drive it away.
Quick Recap
We explored ten budget-friendly used cars that won’t let you down in the long run—each known for reliability, affordable maintenance, and real-world value.
Whether you’re after a compact commuter or a midsize sedan, this list makes your search easier.
The most important part is for you to understand what YOU need from your car.
Your Next Move Starts with the Right Paperwork
We’ve broken down the must-know facts on how to tax your car legally after buying it second-hand in the UK.
From the DVLA’s rules to avoiding common mistakes, this guide makes sure you’re covered from keys to compliance.For more step-by-step car buying help, visit AskAboutCars.com.
