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<p>It has been a long standing feature that Vehicle Excise Duty licences are issued
from the first day of each month. Licensing on a date other than the first of the
month would add administrative complexity and cost to the tax system.</p><p> </p><p>
</p><p> </p><p>As a consequence of the abolition of the tax disc, from 1 October 2014
there will be around 2.5 million motorists that will now receive automatic refunds
upon selling their vehicle that would not have done so previously. The Tax Information
and Impact Note published on 10 December 2013 estimated that the abolition of the
tax disc would have no Exchequer revenue impact. We expect the revenue impact of the
introduction of automatic refunds and the non-transferability of the vehicle licence
to cancel each other out.</p><p> </p><p> </p><p> </p><p>The administrative cost savings
from the abolition of the tax disc are estimated to be £13.8m per year as set out
in the Impact Assessment published by the Driver and Vehicle Licensing Agency (DVLA)
on 8 September 2014. These savings reflect the costs associated with producing, issuing
and posting the tax disc.</p><p> </p><p> </p><p> </p>
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