Does car tax transfer when you buy a used car?
No. Car tax does not pass to a new keeper. Tax the car before you drive it away using the green new keeper slip, and the seller gets a refund.
Updated
No. Car tax does not transfer when a car is sold. Since the paper tax disc was abolished in October 2014, tax is not passed on when a vehicle changes hands. When the seller tells DVLA the car has been sold, their tax is cancelled and they get a refund for any full months left. You, the buyer, must tax the car before you drive it away.
This catches people out because the car may have shown as taxed when you viewed it. That tax stops being valid for you the moment the sale is recorded. Plan for it before you collect the car.
What happens to the tax when a car is sold
GOV.UK is clear on this: the tax or SORN is not passed on when a vehicle is sold or transferred, and that includes giving it to a member of your family.
On the seller's side:
- The seller tells DVLA the car has been sold, online or by post.
- DVLA cancels their vehicle tax.
- If they paid by Direct Debit, it is cancelled automatically.
- They get a refund cheque for any full months left, worked out from the date DVLA gets the information.
On your side, nothing carries over. Your Direct Debit, if you want one, starts fresh. See car tax refunds for how the seller's refund works.
How to tax a car you have just bought
You need the reference number from the green new keeper slip, also called the V5C/2. The seller tears it off the V5C log book and gives it to you. Do not leave without it.
You can tax the car:
- Online on the GOV.UK Tax your vehicle service, using the new keeper slip reference.
- By phone on the DVLA vehicle tax line, 0300 123 4321. You cannot set up a Direct Debit over the phone.
- At a Post Office that deals with vehicle tax. Take the new keeper slip and your payment, or your bank details for a Direct Debit.
You can pay by debit card, credit card or Direct Debit. With Direct Debit you can pay monthly, every 6 months or yearly. Paying monthly or every 6 months adds a 5% surcharge. Our guide to paying car tax by Direct Debit explains the options.
DVLA posts a new log book in your name after the seller tells them about the sale. Our guide to the V5C change of keeper covers that step.
How much it will cost
The tax you pay depends on the car's first registration date, fuel and CO2 figure, all shown on the V5C. For the 2026/27 tax year:
| First registered | What you pay (12 months) |
|---|---|
| Before 1 March 2001 | £230 up to 1549cc, £375 over 1549cc |
| 1 March 2001 to 31 March 2017 | £20 to £790 by CO2 band |
| From 1 April 2017 | £200 standard rate, or £640 with the expensive car supplement |
Put the details from the V5C into our car tax check or the car tax calculator to see the exact figure before you agree a price.
If you buy from a dealer
The rule is the same. A dealer cannot pass on any tax, because the previous keeper's tax was cancelled when the car was sold to the trade. Tax it yourself before you drive away. You need the reference number from the green new keeper slip, so make sure the dealer gives it to you.
If the seller has no log book
If the seller cannot give you the V5C or the new keeper slip, be cautious. A missing log book can be a sign that something is wrong. Ask why, and think about walking away.
If you go ahead, you will need to apply for a new log book on form V62, and you can tax the car at the same time. Check the current fee on GOV.UK.
What happens if you drive it untaxed
Driving an untaxed car is illegal. A car you have just bought is untaxed until you pay.
GOV.UK sets out the penalty: an £80 fine if you do not tax the vehicle or declare it off the road, plus the tax for the time it was untaxed. If the fine is not paid on time the vehicle can be clamped or crushed, or the debt passed to a collection agency.
If you are not ready to drive the car, for example while it is being repaired, make a SORN instead. Our SORN check guide explains what that means.
A short checklist for collection day
- Get the green new keeper slip (V5C/2) from the seller.
- Check the details on the V5C match the car, including the VIN.
- Tax the car online before you set off.
- Arrange insurance in your name from the time of collection.
- Make sure the seller tells DVLA about the sale, ideally online while you are there.
Frequently asked questions
Can the seller leave the tax on the car for me?
No. Since October 2014 tax does not transfer between keepers. When DVLA records the sale, the seller's tax is cancelled and they get a refund for the full months left.
Can I drive a car home after buying it without tax?
No. You must tax the car before you drive it on the road. You can do it online in a few minutes with the reference number on the new keeper slip.
What do I need to tax a car I have just bought?
The reference number from the green new keeper slip (V5C/2), and a way to pay: a debit or credit card, or bank details for a Direct Debit.
Does a Direct Debit transfer to the new owner?
No. The seller's Direct Debit is cancelled when the sale is recorded. You set up your own when you tax the car.
Does a SORN transfer with the car?
No. A SORN is not passed on either. If you buy a car you will not use on the road yet, make a new SORN in your name.