If you’re a motor trader or vehicle tester, trade licence plates allow you to carry out your business without registering and taxing every vehicle temporarily in your possession.
Brand new or second-hand vehicles already registered to you must be taxed and cannot be used under this provision.
Trade plates cannot be used on unroadworthy vehicles. All vehicles must be covered by insurance and have a valid MoT in place, unless they are exempt from MoT requirements. All unroadworthy vehicles must be transported.
The law allows an untaxed vehicle to be driven to and from a pre-arranged MoT
without a trade plate. A motor dealer is defined as a person in the business of selling or supplying vehicles.
A motor trader is defined as:
• a manufacturer or repairer of vehicles
• a dealer whose business consists of collecting and delivering vehicles and
no other activities except as a vehicle manufacturer or repairer
• hire, leasing and finance companies who collect and deliver vehicles
Trade plates are used for vehicles in the temporary possession of a business for
testing, trialling, demonstrating, delivering or dismantling.
For more information go to gov.uk/trade-licence-plates