Car Tax news

Car Tax news from Hampshire Car Finance

By: Hampshire Car Finance  11/11/2014
Keywords: autotrader

You may not know this. From 1st October 2014 the tax disc is being abolished. All part of the Governements plans to cut costs. The end of the tax disc has long been in the pipeline as police now use number plate recognition to catch owners of untaxed vehicles. Tax discs placed on the inside of a windscreen just acts as a receipt that the road tax has been paid. Like many drivers, you might not be aware of what to do if selling a car and it still has road tax on it. If you are selling your car privately, to an auction house, part-exchanging it or you sell your car online then you can no longer add ‘unexpired’ road tax as an incentive to the buyer. When the new system starts in October, the process of selling your car will change and any road tax remaining on the vehicle will transfer to the seller and not the new owner. This means that the seller will receive a refund if there is any tax remaining on the car but only if he or she has informed the Driver Vehicle Licensing Agency (DVLA) that it has been sold. Sellers could face a fine of £1,000 if they do not let the DVLA know about the change of ownership. f your scrap your car or export it, the seller will still need to notify the DVLA and a Statutory Off Road Notification (SORN) will remain applicable if the car is taken off the road. There is no need to keep a tax disc in the vehicle after October 1 and the DVLA will still send road tax renewal reminders. For the first time, drivers will be able to pay road tax by direct debit on a monthly basis as well as paying either annually or six monthly as normal. The end of the car tax disc has led to some to be express concern that unscrupulous sellers may try and sell a car claiming that there is tax remaining on it. But with sellers having to remove any tax value on all vehicles this risk is eliminated. The buyer of the car will need to re-tax the usual way either online, at the post office or via the phone and they will not be able to drive away with the vehicle until it has been taxed. Otherwise the buyer could be fined £80 by the DVLA which is halved to £40 if settled within 14 days or a maximum £1000 if the fine is not settled within 28 days. The DVLA make database checks on vehicles every month and also have the power to clamp vehicles for no tax where thereby the owner must either pay a release fee of £100 or produce a valid tax disc within 24 hours. A fee of £200 must be paid to release cars that are impounded and prosecution costs and fines may also apply. ‹ Wecome to Car News

Keywords: autotrader