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How do I transfer ownership and tax for a used car I've bought?

Just bought a car? Learn more about the V5C form and how you can fulfil your legal obligation of transferring car ownership.

Nimisha Jain

Words by: Nimisha Jain

Last updated on 8 January 2021 | 0 min read

Buying a car comes with various legal responsibilities. As the owner or registered keeper of the car, you must fill the right documents in and send them to the DVLA on time to ensure that you’re not fined at a later date.
When you buy a second-hand car or get it as a gift, the seller (owner) transfers the ownership of the car online or by post using the V5C form, which informs the DVLA that you are the new registered keeper of the car. Since you’re the new keeper of the car, it’s your legal obligation to tax and insure the car using the V5C (also known as the log book) or the green slip provided to you by the seller before you start driving it. Any road tax payments made by the seller for the forthcoming months before you bought the car are not transferable and thus, you need to re-tax the car. Keep reading to learn more about the duties of an owner and new keeper of a car, and the documents you need to transfer car ownership.

How do I transfer ownership of a used car that I’ve bought?

As soon as a car is sold, the seller can change car ownership online by notifying the DVLA of a new keeper. To do so, the seller needs to complete the ‘new keeper’ section of the V5C form and send it to the DVLA, and you (as the new owner) need to keep hold of the green section.
If you don’t receive the new V5C or if the seller has lost the car’s V5C certificate, then you’ll have to fill the V62 form to apply for a new registration certificate. Once the DVLA receives the old V5C from the seller, you should receive the new V5C within four weeks. Confused between ‘owner’ and ‘new keeper’ of a car? Keep reading to find out what the difference is.

Can I transfer tax to a used car that I’ve bought?

Road tax is not transferable between owners of a car, even if you’re family members. Updated rules came into force in 2014 that put an end to issuing of tax discs and allowed sellers to get a full refund on the sold car’s remaining months’ tax. This means before you drive away with the car that you’ve just bought, you need to tax it as a legal requirement.
If you’re buying from a dealer, they will be able to sort that for you. However, if you’re buying the car from a private individual, you can’t take advantage of any tax that’s left on the car. To tax the car, you need the new keeper section of the V5C online – another reason to insist on seeing the V5C before you buy the car – and you can tax the car immediately, either online via gov.uk, over the phone (lines open 24 hours a day), or at a Post Office that deals with vehicle tax. Learn more about how much car tax is levied on a second-hand car. Read more: Can I tax my car without a log book?
Frequently Asked Questions:

What is the difference between owner and registered keeper?

A car’s owner and registered keeper can be the same person or two different people.
Essentially, the registered keeper is the person who is responsible for taxing and insuring the car, checking the car’s MOT status to ensure it’s roadworthy, and following all other legal obligations. If you’re the car’s registered keeper then your name will be registered in the V5C form, and if anyone commits an offence while driving your car like getting a parking ticket or speeding, you’re the first person the police will contact. The car owner, on the other hand, is simply the person who buys the car. The car owner and the registered keeper will be two different people if the owner transfers ownership of the car to a family member as a gift or to a company employee for work. In this case, it would be the owner’s duty to notify DVLA of the new keeper using the V5C form, which the car owner and the new registered keeper would have to sign.

Can I buy or sell a car without a log book?

Yes, selling or buying a car without a log book is possible, but the DVLA recommends against it.
You are legally allowed to sell your car without a log book (V5C) as it only acts as a proof of registration and not as a proof of ownership. You’d need to provide the buyer with a bill of sale which would include all the information that the buyer would need to apply for a new log book using the V62 form. The DVLA recommends against it because selling a car without a V5C can be suspicious. Being in hurry to sell your car without a V5C document or without waiting for a replacement to be sent to you might raise concerns about the car being stolen, written off or having a loan against it. This will make the car selling process longer as buyers might feel wary of buying from you, or they might try to haggle the price.

Can I tax a car without a log book?

No, you can’t tax a car without a log book as you need the 11-digit reference number.
If you’re a new keeper of the car and you don’t have a V5C in your name yet then you can use your green new keeper slip and tax the car using the 12-digit reference number.

Can I tax a car if I’m not the registered keeper?

Only the registered keeper can tax a car because you need the V5C form or the new keeper slip (if taxing your second-hand car for the first time) to tax the vehicle.

Can I transfer ownership of my car without a V5C?

Yes, you can transfer ownership to the new keeper without a V5C. To transfer ownership without a log book, you’ll have to write to the DVLA at – Swansea, SA99 1BA; and send them information about the car’s registration number, make, model and the date when you sold the car, along with the registered keeper’s name and address and the new keeper’s name and address.

Can I tax my car if my new keeper slip reference number is invalid?

Sometimes the online DVLA service is unable to recognise recent documents. In such a scenario, should try and take your new keeper slip and all the required documents to the Post Office and they can help you tax your car.
In case this doesn’t work, you should contact the DVLA for further help.

How to tax a car that you’ve just bought

If you’ve just bought a second hand car, you can tax the car using your new keeper slip. New cars usually come taxed when you buy them from a dealer.
If you’re renewing your car’s tax, you’ll need your V11 letter or your V5C. Regardless of whether it’s your first time paying vehicle excise duty or a simple tax renewal, you can go to gov.uk and use DVLA’s online services to tax your vehicle.

How to change car tax class

Different cars are classified under different tax bands or tax classes based on factors like the age of the car, engine size and how much pollution it emits.
If your car’s tax class changes, you need to inform the DVLA so that you’re paying the correct amount of tax. You can change your car’s tax class by post or by going to the Post Office, depending on why you’re changing the car tax. You can change the tax class at a Post Office when: • Your car tax is about to run out or your car and you’ve received a ‘last chance’ warning letter • Or, if you’ve been paying tax up until now and you’re changing your car’s status to being exempt from vehicle excise duty or the other way round where you’ll start paying tax on your car now You can change your car tax by writing a letter to the DVLA at Swansea, SA99 1BF if: • Your car is taxed and you want to change the tax class • The purpose of your vehicle changes, example: a car that was used for business is now being used for personal use • The car’s body-type changes • The structure of the car changes You’ll need your log book, V11 tax reminder letter, MOT certificate, method of payment for paying your car tax and an insurance certificate to change your car’s tax class. You can also use a V62 form or your ‘new keeper’ slip in case you don’t have the V5C. If your car is taxed and needs to change from one tax class to the other, you’ll need to fill a V70 form and post it to the DVLA.

Does MOT transfer to the new owner of the car?

Yes, the MOT is transferred to the new owner of the car. An MOT details a car’s roadworthiness and has nothing to do with who the owner is, so essentially, the car’s MOT certificate will remain valid for the time period it has been issued for, regardless of who the registered keeper is.

What happens if I fail to tell the DVLA I’ve sold my car?

If you fail to inform the DVLA that you’ve sold your car, the car will remain registered under your name in DVLA’s records. This means the DVLA will keep charging you vehicle excise duty and fine you for failing to pay it.
Also, if the new registered keeper of the car is caught breaking any driving laws, you’ll be contacted by the DVLA for breaking the rules of the road – you may also get penalty points on your licence along with a fine. If you have received any fines or penalties because you forgot to inform the DVLA about selling your car, you should contact the DVLA immediately and inform them about the situation.