What did section 10 of the Vehicle Excise and Registration Act 1994 originally deal with?

Section 10 originally governed the transfer of a vehicle excise licence from one keeper to another, for example when a vehicle was sold. It allowed the remaining period of a licence to pass to the new owner, meaning the buyer could benefit from the unexpired portion of the seller's vehicle excise duty.

Why was section 10 of the Vehicle Excise and Registration Act 1994 repealed?

Section 10 was repealed as part of a broader modernisation of the United Kingdom vehicle excise duty system. The Finance Act 2008 began the process and the Finance Act 2014, Schedule 19, completed it. Since the reforms, vehicle excise duty no longer transfers with the vehicle on a change of keeper.

What happens to vehicle excise duty when a vehicle is sold after the repeal of section 10?

When a vehicle is sold, the existing licence is effectively cancelled. The new keeper must obtain and pay for a fresh vehicle excise licence before using the vehicle on public roads. The previous keeper can apply for a refund of any full remaining months of duty on the old licence.

Can a seller claim a refund for unused vehicle excise duty after selling a vehicle?

Yes. Following the repeal of section 10, when a vehicle is sold the seller can claim a refund for any full remaining months of vehicle excise duty. No value attaches to the unexpired portion from the buyer's perspective, as the buyer must independently tax the vehicle under a new licence.

Vehicle Excise and Registration Act 1994 section 10

Transfer of vehicle licences

Section 10 previously dealt with the transfer of vehicle licences but has been repealed in its entirety.

Section 10 originally governed the transfer of vehicle excise licences from one person to another.
The section was progressively repealed by the Finance Act 2008 and the Finance Act 2014.
The Finance Act 2014, Schedule 19, completed the removal of this provision from the statute book.
The transfer of vehicle licences is no longer a feature of the vehicle excise duty regime.

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