I had a letter from Continuous Registration Centre (DVLA) asking me to pay a fine (£40 or £80) because I had not taxed my car. My car tax was due at the end of February and I sold it to a garage in part exchange on the 18 February, so was no longer the registered owner and had another car for which there was tax. I filled in something on the back of the letter to the effect that the car had been sold on 18 February. I then received another missive saying that they didn't accept that and I was still the registered owner and should have paid the tax or notified them I was no longer the owner.

I wrote back to them again telling them I had sold the car and with copies of sale document, everything that I had signed at the garage, and a copy of the log from the garage showing they had sent everything to do with their purchase of my car to the DVLA on the 20 February. I have heard back from Continuous Registration Centre saying I had failed to relicense my car under Section 7A of VERA 1994 and that I had failed to notify them I was no longer the owner contrary to Regulation 22 and 24 of VERA 2002. I do not understand the Act and don't see why I should pay for a tax disc on a car of which I am no longer the owner. Can you explain this to me?