Does car tax transfer when you buy a car?
No. Since October 2014, vehicle tax does not transfer with the car. When it is sold, the seller’s tax is cancelled and refunded, and the new owner must tax it before driving it, including the drive home.
Updated 14 October 2026
What happens when a car changes hands
When the seller tells the DVLA the car has been sold, any remaining full months of tax are cancelled and refunded to them automatically. The tax disc was abolished at the same time, so there is nothing on the windscreen to show either way.
From that moment the car is untaxed. Driving it, even for a few miles, is driving an untaxed car.
How to tax a car you have just bought
You need the new keeper slip (V5C/2) the seller gives you, or the full V5C if you are already its registered keeper. With the 12-digit reference number from the slip you can tax the car online or by phone in a few minutes, there and then.
You also need insurance in place before you drive: the DVLA checks that the car is insured when you tax it.
Collection day checklist
Before you drive away: insurance active on the car, tax paid using the V5C/2 reference, and a valid MOT (check it on the public record rather than trusting a certificate). After you drive away: make sure the seller has notified the DVLA, and watch for your new V5C arriving within a few weeks.
Keep the new dates in one place
Add the car to Odomint as soon as it is yours. It reads the tax and MOT dates straight from the DVLA and DVSA and reminds you before either runs out.
Buying from a dealer
Dealers usually handle the paperwork and may tax the car for you on collection, but the rule is the same: tax does not transfer, and the car must be taxed in your name before you drive it on the road. Ask the dealer to confirm it has been done rather than assuming.
Check the tax status on the public vehicle enquiry service before you drive away. It updates within minutes of taxing. It is the quickest way to make sure nothing has been missed, and it is worth doing with a private sale too.
Common questions
Can I drive a car home without tax after buying it?
No. Tax does not transfer, so you must tax the car before driving it, which you can do online in minutes using the V5C/2 new keeper slip.
Does the seller get a refund of car tax?
Yes. The DVLA automatically refunds any full calendar months of tax remaining once the seller tells them the car has been sold.
Do I need insurance before taxing a car?
Yes. The car must be insured before it can be taxed and before it is driven.
Check any car before you buy it
MOT history, every advisory and the full mileage record are free for any UK registration. An Odomint Check adds outstanding finance, insurance write-offs, stolen markers and salvage history, with a £10,000 data guarantee.