Number Plates and Tax

This is general guidance, not professional tax advice. Always confirm with your accountant.

VAT on purchase

• From the DVLA at auction: VAT is charged on the buyer's premium only, not the hammer
• From a UK dealer: VAT is included in the price (most operate VAT-margin scheme on used plates)
• Private sale: No VAT

Capital Gains Tax on sale

Number plates are treated as chattels by HMRC. The annual CGT allowance applies, and:

• Plates sold for under £6,000: usually no CGT
• Plates sold for over £6,000: gain calculated on (sale price − purchase price − costs)
• 2026 CGT rates: 18% basic rate, 24% higher rate

Gift tax

Plates given as gifts:

• Up to £3,000/year per person — no inheritance tax implications
• Above that — counts toward your IHT taper if you die within 7 years

Business / company purchase

If a company buys a plate:

• Treated as an intangible asset
• Capital allowances usually don't apply
• VAT recoverable if VAT-registered
• On disposal, gain/loss flows through P&L

Record-keeping checklist

Keep these for every plate:

• V750 / V778 certificate
• Purchase invoice
• DVLA assignment confirmation
• Insurance correspondence

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