It's another one of those traditional British rip-offs. Road fund is no longer transferable with the sale of a vehicle. So, if you buy a vehicle part way through a month, you need to tax the vehicle from the minute you buy it. The seller will get a rebate of any full months remaining on the current tax, but no rebate of a part month. Also, if the seller only bought a six month tax disc, he'll only get a refund on the actual road fund, not on the extra paid.
Legally, a vehicle is not taxed from the minute the seller signs the V5C.
Therefore, the DVLA could, potentially gain thousands through the double taxation of vehicles when they're bought. That, combined with the savings on the printing of tax discs, amounts to a tidy penny. Will we see a reduction in road tax? Methinks not!
I also wouldn't put it past the sneaky beggars to have some sort of system in place that flags up a change of registration number on insurance policies and matches them against the purchase of road fund. With the exception of NI (apparently, they can't check for new insurance in NI on line), road fund can be bought on line or by phone (it's an 0300 number so not freephone) 24/7 using the new keeper bit of the V5C, so they won't take any excuses.
Basically, if you've still got tax on it, only sell a vehicle towards the end of a month!
