Have a read of this, copied from a vehicle forum, the link at the bottom explains the rules
As from 9 June 2009 DVLA have implemented a new system for reporting Illegally displayed VRNS (vehicle registration numbers).
Prior to that the Cop who pulled you over had a number of methods of disposal, ranging from doing nothing, through to Fixed Penalties and Defect Rectification Notices.
There was also a very long and complicated system where if the cop took a picture of the VRN then posted it with a long form to the DVLA they would perhaps if the wind was blowing the right way on a wet Tuesday maybe write to the keeper and tell them off.
The DVLA have realised that most ops Traffic included won’t issue fixed penalties or spend hours filling in forms and have brought in the following system.
On receipt of a now A4 size form (miniscule in the Police world of forms) and a copy of the photograph of the offending VRN the DVLA will now write to the registered keeper and give them 28 days to correct the defect AND then provide them (DVLA) photographic evidence of this. On the 29th day they will automatically DEREGISTER your vehicle, if you do provide such proof you will get a letter back saying thank you if it happens again we will deregister the vehicle without warning.
Now having your vehicle deregistered is a real pain it means a day off to the local DVLA office to re register it, getting your tax, mot and insurance changed to your new allocated number cos you won’t get your old one back (remember you don’t own your plate, just the rights to display it legally) if it cost thousands it’s a bugger they will just auction it off again.
You can’t drive the car in this time mind you.
Now the bit which will make it a success for them is the vehicle does not have to be stopped for this photo to be taken it can be a CCTV or ANPR camera still image.
Attached is the link to the DVLA regulations for VRNshttp://www.dvla.gov.uk/media/pdf/leaflets/v796.pdf
Be aware in this legislation if the owner is claiming an exemption i.e. pre 01092001 the onus is on the keeper to prove that the plate was manufactured before that not the other way round, this is because plates are considered consumable items and likely to frequent change.
This is not a change in the law or a change in enforcement policy by the Police it’s just a procedural change by the DVLA