26 August 2014

UK changes car tax system

Across the Irish Sea, from 1 October next, paper tax discs will be made redundant; replaced instead with a new electronic system that is being introduced by the UK's Driver & Vehicle Licencing Agency (DVLA), writes Trish Whelan. Instead, vehicle owners will register their car either at a Post Office branch or on the DVLA website, with all vehicle tax details to be stored electronically.

 The new regulations will affect those buying and selling cars. While unexpired tax discs are currently transferred with the sale of a vehicle, this won't be the case as of 1 October so a new owner will have to tax the vehicle immediately after purchase or run the risk of being caught driving an untaxed vehicle and be hit with a hefty fine. Enforcement cameras will be present on UK roads using number plate recognition, to establish whether or not a vehicle is taxed.

This could have implications for Irish people who go to the UK to buy cars and drive them back as the car will technically be untaxed once it is signed over to them.

To import a car from the UK into this country, the new owner will need to first let the UK authorities know that they are exporting the car. The new owner is required to get a V5C document, the equivalent of our Vehicle Registration Certificate and complete the V5C/4 Notification of Permanent Export section of the V5C document and send it to the UK's DVLA. Such purchasers should remember to keep their part of the form, both because it will be needed for registering the car on the Irish side, and because it will also prove that the car is in transit while being driven in the UK on the way to Ireland.