If a driver wishes to drive another vehicle which is not currently taxed, would they be allowed to transfer the current tax disc from their own vehicle onto it?

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Yes, provided their own vehicle is not being used at the same time.

Only on a temporary basis if the other vehicle is subject to a lower rate of tax.

Under circumstances when the proper form has been completed and sent to the local Motor Tax Office.

Under no circumstances should a tax disc be transferred to another vehicle.