Tax on Private Number Plates

If you sell a private registration for more than you paid, you may have a tax bill. HMRC treats the right to use a registration as an asset in its own right, separate from the vehicle it is on. This guide explains the main principles. It is general information, not tax advice; for your own situation, speak to an accountant or tax adviser.

Is there Capital Gains Tax on selling a private plate?

It can apply. HMRC's Capital Gains Manual has long said that the right to use a registration mark is not a chattel and is separate from the vehicle, so a gain made when you dispose of a registration is a chargeable gain for Capital Gains Tax. HMRC archived the manual pages on personalised number plates (CG76923, CG76926 and CG76928) in September 2026, and no replacement guidance had been published by October 2026, so check the current position with an adviser or HMRC before relying on it.

That matters because cars themselves are generally exempt from Capital Gains Tax, and many personal possessions benefit from chattel rules. A valuable registration does not share those exemptions just because it is on a car.

How is a gain worked out?

In broad terms, the gain is what you received for the registration, less what you paid for it and allowable costs such as the DVLA fees and dealer charges involved in buying and selling it. Keep records of:

• the price you paid, including any buyer's premium and VAT you could not recover;
• DVLA assignment, transfer and retention fees;
• dealer commission or advertising costs when you sell; and
• the sale price and date.

Gains are added to your other chargeable gains for the tax year and the annual exempt amount applies. Rates and allowances change, so check the current figures on GOV.UK.

What if the plate is sold with the car?

Selling a car with a valuable registration on it does not avoid the issue. HMRC's view is that the registration is a separate asset, so part of the sale price may relate to the registration. If you are selling a car whose registration is worth significantly more than the car, take advice before you agree a price.

What if you buy registrations to resell?

If you buy and sell registrations regularly with the aim of making a profit, HMRC may treat this as a trade. Profits would then be subject to Income Tax rather than Capital Gains Tax, and different record-keeping rules apply.

What about businesses and VAT?

Businesses that buy registrations, including for company vehicles, need to consider how the purchase is treated for corporation tax and whether VAT can be recovered. The answer depends on how the registration is used and who owns it, so speak to your accountant before buying a registration through a business.

What about inheritance?

A valuable registration forms part of an estate. See our guide on private number plates after a death for the DVLA process.

How can sales data help?

Evidence of what comparable registrations sold for can help support a valuation at the date you acquired or disposed of a registration. You can search documented sales back to the first DVLA auction in 1989 in our Sales Explorer and DVLA auction sold prices.

Frequently asked questions

Do I pay tax when I buy a private plate?

Not Capital Gains Tax. VAT is charged on registrations bought from the DVLA and on many dealer sales, so check whether a quoted price includes it.

I sold a plate for less than I paid. Is that a loss I can use?

Possibly. Because a gain on a registration can be chargeable, a loss may also be allowable. Ask an adviser.

Where can I read HMRC's guidance?

HMRC's Capital Gains Manual sections on personalised number plates (CG76923, CG76926 and CG76928) were archived in September 2026 and are no longer published on GOV.UK. Ask HMRC or a tax adviser for the current position.