DVLAs latest vehicle tax disc rules came in to action on 1st October 2014.
The paper tax disc that was very first issued on 1st January 1921 has now finally come to an end. So as from the 1st October this year you no longer have to display a tax disc in your vehicle window. However, you still need to pay vehicle tax and the DVLA will automatically send you a renewal reminder when your tax disc is due to expire.
You are now able to pay your vehicle tax by direct debit, you can pay either monthly, annually or biannually, but to pay biannual or monthly payments there will be a 5% surcharge.
If you buy or sell a car, your old tax disc can no longer be transferred. You will need to get new vehicle tax for the new car before you can start driving it.
However if you sell a car/vehicle after 1st October 2014 and you have already told the DVLA, you can get a refund for any remaining months left on the vehicle tax.