PART 5
January 2012
DEALING WITH PERSONALISED (CHERISHED) REGISTRATION NUMBERS
31.2.72 Personalised registration numbers - general
A registration mark (to give it its official name) is issued to a vehicle on registration of that vehicle by the DVLA [note 1] and may be defined as the characters that are shown on the number plate of a vehicle. A registration mark is also more commonly known as a registration number.
Some registration marks have a transferable value in their own right. The ‘F1’ number plate, for example, was sold by Essex County Council in 2008 for £440,000. Not all registration marks are worth that sort of money and a more typical value is likely to be in the hundreds or low thousands of pounds. Registration marks that have a transferable value are called personalised or cherished numbers.
31.2.73 Frequency of personalised registration marks
It is difficult to say how likely it will be that the official receiver will encounter a personalised registration mark when dealing with the administration of an insolvency.
As at the end of 2010, there were 34.1 million vehicles licensed in the UK and in the financial year 2000-2001 the DVLA processed 259,400 applications to transfer a registration mark. Assuming that the number of applications has stayed roughly the same (more recent figures are not available), this represents a rate of application to registration of fewer than one personalised number plate per 1,300 cars registered. Of course, the number of transfers is likely to be lower that the total number of personalised registrations but, even so, the official receiver can expect to encounter such a registration as an exception – though not a rare exception.
31.2.74 Considering the value of a registration number when dealing with a vehicle
When dealing with a vehicle owned by the insolvent, the official receiver should consider whether the registration number allocated to that vehicle has a value in its own right (see paragraph 31.2.86) and, if so, deal with it as an asset following the guidance in this Part of the chapter. This would be the case even if the vehicle itself were to be treated as exempt property (see paragraph 31.2.84).
It is not always obvious that a registration mark has a value, though if it looks unusual or does not fit the normal pattern for a registration mark then it may well do. Registration marks can be valued relatively easily (see paragraph 31.2.86).
31.2.75 Property status of a registration mark
A registration mark does not have a property status in its own right – rather it is the right to assign that mark that is the property that would pass to the official receiver as liquidator or trustee. In as much as a registration mark is owned at all, it is owned by the Secretary of State for Transport.
On the issue of a new registration, the person entering into the contract with the DVLA buys the right to assign the registration mark to a vehicle registered in their name or the name of another person (known as the ‘nominee’). The nominee has no rights to the mark until it is registered to their vehicle.
The person on whose vehicle the registration mark is allocated then has the right to transfer it to another vehicle in their name (when, for example, they buy a replacement car – see paragraph 31.2.78) or to another person (see paragraph 31.2.79).
31.2.76 Time limits to assign the registration mark to a vehicle
Following the initial purchase of the right to the registration mark, the DVLA will issue the purchaser with a certificate (known as the Certificate of Entitlement – V750) showing the date by which the mark must be applied to a vehicle. This period is usually 12 months from the date of the certificate and can be extended, by application for periods of one, two or three years. Details of how to make such application for extension are shown on the Certificate of Entitlement.
Official receivers should take care that where an insolvent holds the right to assign a registration mark, that right does not lapse prior to realisation.
31.2.77 Owner of the vehicle has the right to transfer the registration mark
Once a registration mark has been assigned to a vehicle, the keeper of that vehicle gains the right to transfer that mark to another vehicle. So if, for example, the vehicle is sold without the mark first being transferred to another vehicle kept by the original holder of the mark (see paragraph 31.2.75) or being retained (see paragraph 31.2.78) by the original keeper, the right to assign the mark will pass to the new owner of the vehicle.
In this context, it is important that the official receiver deals with a personalised registration mark on an insolvent’s vehicle before the vehicle is dealt with (which would include selling the vehicle, scrapping the vehicle or allowing it to be repossessed by a finance company).
31.2.78 Retention of a registration mark
It is possible to withdraw a registration mark from a vehicle and hold it on retention. This may be necessary where, for example, the holder of the right is planning to sell his/her vehicle but has yet to purchase a new vehicle. As with the original purchase, this right is time limited, but may be extended. On retention (using form V317), the DVLA will issue a Retention Document (V778) showing the date by which the mark must be assigned to a vehicle and giving instructions for the extension of that date.
The official receiver may follow this procedure where a vehicle owned by an insolvent is being dealt with and it has not been possible to reach an agreement for the transfer of the mark as part of the sale of the vehicle.
The fee for the retention of a mark is shown in form V317.
31.2.79 Transferring the registration mark to another person
The process for transferring a registration mark (other than by the sale of the vehicle) is connected to the retention process (see paragraph 31.2.78) in that the person retaining the mark may choose another to be the ‘grantee’ of the mark. The grantee then becomes the one with the right to transfer the mark, or to assign it to a vehicle. The process of retention and passing the right to a grantee is conducted using form V317, which is dealt with by the DVLA local office .
The fee for the transfer of a mark to another person is shown in form V317.
31.2.80 Transferring the registration mark to another vehicle
It is possible for a registration mark to be transferred directly from one vehicle to another. This process is conducted through the completion of form V317.
The fee for the transfer of a mark to another vehicle is shown in form V317.
31.2.81 Dealing with a registration mark generally
The official receiver may instruct his/her agents to deal with the sale of the registration mark, or may deal with the matter directly, following the guidance elsewhere in this Part.
Alternatively, the official receiver may instruct a specialist in the sale of registration marks (see paragraph 31.2.87).
31.2.82 Dealing with a personalised registration mark as an asset – where mark has not been assigned to a vehicle
Where an insolvent holds the right to a personalised registration mark that has not been assigned to a vehicle (including one that has been retained), the mark may be sold as any other item of property.
If the mark is being sold to a person introduced by the bankrupt to purchase the right on behalf of the bankrupt then the purchaser may be satisfied with the transaction being conducted on an informal basis with no requirement for completion of the transfer document (see paragraph 31.2.79). Otherwise, or if the transfer is to an un-connected party, it will be necessary to complete form V317 to formally effect the transfer.
The fee for the transfer of a mark is shown in form V317. This fee should be covered by the purchaser and the official receiver will need to take this into account when negotiating the sale.
31.2.83 Dealing with a personalised registration mark as an asset - where mark has been assigned to a vehicle
Where a registration mark has been assigned to a vehicle that is property of the insolvent, the simplest way to deal with the mark would be to sell it with the vehicle (taking account of the value of the mark when negotiating the sale) (see Part 3).
Where the purchaser of the vehicle is not interested in buying the mark or unable to make an acceptable offer, it will be necessary to retain the mark (see paragraph 31.2.78) before sale in order that it can be dealt with separately (see paragraph 31.2.82).
31.2.84 Dealing with a personalised registration mark as an asset - where mark has been assigned to a vehicle that is likely to be exempt
If the mark is assigned to a vehicle that is likely to be treated as exempt (see Chapter 30, Part 6), the mark should be retained (see paragraph 31.2.78) before the vehicle is treated as exempt in order that it can be dealt with separately. As an alternative, the bankrupt may wish to introduce a third party to ‘buy-out’ the official receiver’s interest in the mark.
31.2.85 Vehicle(s) must be taxed when transfer or retention of registration mark takes place
The DVLA will not accept an application for the transfer (see paragraph 31.2.79) or retention (see paragraph 31.2.78) of a registration mark unless the vehicle(s) involved is (are) taxed
31.2.86 Valuation of registration marks
Depending on experience and expertise, the official receiver’s normal agents may be able to offer an opinion as to the value of a registration mark.
Alternatively, a company specialising in the sale of personalised registration marks will usually be able to value a mark. The Cherished Numbers Dealers Association keeps a directory of members – some of whom provide web-based or telephone instant valuation services.
Finally, a search of listings sites such as ebay or Gumtree may show up marks similar to the one held by the insolvent on which a valuation may be based.
31.2.87 Marketing of registration marks
Where the registration mark appears to have a significant realisable value and/or there is no ready purchaser, it may be necessary to market the mark for sale. The official receiver has various options in this regard:
31.2.88 Vehicles subject to finance with a personalised registration mark
If a vehicle with a personalised registration mark is subject to finance (see Part 2), the official receiver will need to establish whose name is on the vehicle registration document (see paragraph 31.2.9) as it is that person who has the rights to the mark (see paragraph 31.2.75).
If the finance company is the registered keeper then the official receiver should endeavour to ensure that the finance company apply the value of the mark to the repayment of their debt, to reduce the insolvent’s liability and to account to the official receiver for any surplus arising.
[Back to Part 4 – Disposal of vehicles with no realisable value]