Instant Car Warranty Quote!
Enter your Registration Number for an online quote today!
Instant Car Warranty Quote!
Enter your Registration Number for an online quote today!

Double Tax & Clamped Cars: What you need to know

New legislation ensures unused tax cannot be passed onto new owners of a vehicle. Some families forced to pay double road tax.
Double tax and Clamped cars - what you need to know

Drivers in the UK are being forced to pay an additional £38million in taxes after the newly introduced electronic tax system starts to clamp down on unused tax being sold with a car. If you have recently purchased a car with a couple of months of unused tax, you might think you’re safe – but you’re not.

The number of cars clamped due to having no tax has sky-rocketed since the introduction of electronic road tax and this is because the unused tax is being wiped the moment the vehicle is sold. President of the AA, Edmund King has revealed “…the DVLA’s clampers are now netting 3,000 more untaxed cars a month than this time last year.” The AA also said the increase in clamping makes it a 71% increase since February last year.

What’s more, the AA has also heard from families who have had to pay tax twice in one month just to transfer the car to another member of the family and they will be receiving no refund.

double tax clamped cars
71% increase in cars clamped since February last year

With the new legislation in play, when it comes to selling a car, the seller will need to inform the DVLA that the vehicle has changed hands and the tax has been cancelled with any remaining full months being refunded. It is then up to the new owner to immediately tax the vehicle on the day of the purchase. However, regardless of whether the buyer purchased the vehicle right at the end of the month, they are required to pay tax from the 1st of that month or face the clamp and fines.

Specifically, if a vehicle is clamped due to lack of tax, a fee of £100 must be paid to have it released. The owner will then be charged a further £160 unless they can prove that the vehicle has been taxed within 2 weeks of the clamp. If the vehicle is not released within 24 hours, it will be impounded and the release fee increased to £200. The owner will be charged and additional £21 for every day that the vehicle is held in storage.

This comes as unsettling news to many people in the UK who have had no reason to suspect their vehicle should in fact be “SORN’d”. In fact a recent AA survey actually found that 51% of people had no idea that you could no longer pass on unused tax.

It also means buyers must be warned that if a vehicle is advertised as “taxed until Jan 2016”, they need to ignore this. It’s no longer a selling point as they will need to tax the vehicle themselves immediately after purchase.

Buyers and sellers alike, remember: Caveat emptor – “Let the buyer beware”

Thanks for reading. Make sure to stay tuned to the Warrantywise blog, Facebook and Twitter for more great content throughout 2015!

Sources: ThisIsMoney, Metro, BT

Leave a Reply

Your email address will not be published. Required fields are marked *

Plan Cover Levels

04/40 Cover Level
06/60 Cover Level
08/80 Cover Level
10/100 Cover Level
12/120 Cover Level
Get a Used Car Warranty Quote Today!
Get an instant quote online by entering your car registration number above. Alternatively, call a member of our team today on the number below.
0800 001 4990
5 Petre Court, Petre Road, Clayton-le-Moors
Lancashire, BB5 5HY

Email Address:
Freephone: 0800 001 4990
Fax: 01254 301 399
Or call us on freephone:
0800 001 4990

Copyright © 2017 Warrantywise Limited. All rights reserved.

Warranty Wise and Warranty Wise Logo are trademarks of Warrantywise. The website "" and contents herein are for information purposes only. This does not form part of any contract of protection. Any and all Warranty Plan confirmation including Warranty Plan Documents and Application Forms will be issued upon purchase. It is important that you read our information supplied and then make your own choice of warranty cover together with any plan additions that you may need as a vehicle owner who demands to ensure that your vehicle warranty requirements are met now and in the foreseeable future. Terms & Conditions apply provided by Warranty Wise and also available to view here warranty plan terms Tel 0800 169 7880. Warrantywise VAT registration number 264 8618 71 all prices and monetary figures quoted include VAT at the current rate. Warrantywise Limited is a company registered in England and Wales No. 07963594 at 5 Petre court, Petre Road, Clayton-le-Moors, Accrington, BB5 5HY and is part of Wise Group Holdings Limited, Company No. 10613336.