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Using trade licence plates
You can only use trade plates for vehicles temporarily in your possession for testing,
trialling, demonstrating, delivering or dismantling.
A manufacturer can use trade plates on a vehicle, kept and registered in their name,
only for research and development purposes.
When you cannot use a trade licence plate
If you own or register a vehicle then normal vehicle tax rules apply. As the registered keeper you must tax any vehicle you use and this includes demonstrations or test drives and if it’s used by your employees.
Trade plates cannot be used on:
• any vehicles registered in your name as the registered keeper is legally responsible for taxing a vehicle being used or kept on the public road (see page 5 ‘Transferring your vehicles into your trade stock’)
• stock vehicles used by employees for personal or private business use
• unroadworthy vehicles as these vehicles must be transported (all vehicles used on
the public road must be insured and have a current MOT, unless exempt).
You can only drive an untaxed vehicle on a public road to or from a pre-booked MOT or other testing appointment.
How to display trade licence plates
Display your trade plate:
• with numbers and letters in a vertical position (see below) and make sure you
can read the plate from a distance of between 18 to 22 metres
• anywhere on the outside of the vehicle, make sure you can see it and it’s in an
upright position on the front and rear of the vehicle.
• on the rear only for motorcycles.
Do not:
• display the plate inside the vehicle
• cover the vehicle’s existing number plates (except motorcycles).
The onus is on you, the motor dealer, trader or vehicle tester to make sure that you meet these requirements. Failure to display trade plates correctly is an offence.