Car Tax Reform Causing Consumers to Pay Double Tax

car tax disc

Car Tax Reform 

If you're selling your car in the near future, you may be in for a sad surprise. Changes in tax rules mean that you may have to pay car tax twice in a month. New regulations have come into place, meaning that in-date tax discs will become void when the car is sold to another party.

In addition to this, you are only able to claim back a full month's worth of tax. Therefore, if you transfer a car from one family member to another in the middle of a month, you may end up having to pay double the tax with no refund possible.

Increase in Tax Sees Government Raise an Additional £38m in Revenue


The government is expected to rake in an additional £38 million due to the new car tax reform. The AA have criticised the lack of publicity surrounding the measure and cite the increasing number of clampings taking place as an indicator of the lack of publicity surrounding the issue. When asked to comment, Edmund King, the president of the AA, said: ""We are particularly disappointed that there was not an equally massive communications campaign to ensure the UK’s 35 million drivers got the message."

Have you been caught up in the confusion around car tax reform? Tweet us @TradexInsurance and tell us your story. We'd love to hear from you

Tradex is one of the UK's leading providers of motor trade insurance. Whether you are looking for a quote for a new policy or renewing your existing policy, our friendly team of advisors will be able to assist you with any questions you may have.

Image by Paul Townsend.

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