Background
6.The registered keeper of a vehicle may apply to retain the vehicle’s registration mark separately from the vehicle(1). This would typically be done with a view to selling the right to use that mark on another vehicle. An application cannot be made by anyone other than the registered keeper of the vehicle.
7.A retention document confirming the grant of the right of retention (i.e. the right to have the mark transferred to another vehicle) is issued to the applicant (the “grantee”). The retention period (i.e. the period during which the mark may be retained separately from a vehicle) is 12 months. That period may be extended by the Secretary of State by further 12-month periods until the mark is eventually assigned to a vehicle(2). A new retention document is issued at each extension.
8.The grantee’s right of retention enables him to transfer the registration mark to a vehicle registered in his name or in the name of a nominee. The nominee’s name must be included on the retention document.
9.Although a grantee may sell entitlement to the registration mark to the nominee, the grantee must remain involved in the process, as it is only the grantee who can exercise the right of retention and thereby have the mark assigned to the nominee’s vehicle. The nominee/purchaser has no rights to the registration mark until it is assigned to a vehicle registered in their name.
10.The Act allows provision to be made enabling the registered keeper of a vehicle to transfer entitlement to the vehicle’s registration mark to the purchaser at the point at which the application for a right of retention is made. Such provision removes the necessity for the registered keeper to be involved in the process beyond making the initial application for a right of retention to be granted in favour of their desired purchaser.