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The same system applies when disposing of a vehicle to the trade, except that the V5/3 section is used in this case. If you have an old style V5, as many will have, then the procedure as detailed on that document will apply (the old system) until the vehicle by transfer of ownership acquired the new type V5.
As from the 1st January 1998 it will become legally binding for an owner to notify the DVLA if he or she owns a vehicle that is off the road and untaxed. This will become known as Statutory Off-Road Notification, or as is the current practice of using acronyms SORN - or perhaps it should be SWAN in some cases! Be aware of this requirement, which we are sure will become widely publicised in due course, and is likely to attract a fine if the procedure is ignored.
If you purchase a complete vehicle, together with the old RF60/VE60 (green or buff) registration book, you would be well advised to register the vehicle under the current V765 scheme, before dismantling it. This will permit one of the V765 inspectors to look at the vehicle in its current state, and verify numbers etc. and permit application to be made to the DVLA for retention or re-allocation of the original number. The declaration on the V765 reads I declare that I am the keeper of the above mentioned vehicle, which I have reason to believe is the same one that originally carried the registration number now applied for on a non-transferable basis. I confirm that it exists as a complete vehicle. I agree to produce the vehicle for inspection when required .
Your restoration can then proceed at whatever pace, safe in the knowledge that when the vehicle is ready for the road again application for a current tax disc is all that requires to be done on that front.
If you have any queries on this matter please contact the Rederation for further advice. Alternatively you should contact Ian Rendle who is the M.G. Car Club representative.
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Official DVLA site