The Department of Transport is required by the Duties Act 2008 to collect vehicle licence duty when a vehicle is licensed or its licence is transferred.
Caravans
Any caravan defined as 'a trailer (including a camper trailer) permanently fitted for human habitation in the course of a journey' is exempt from the payment of Vehicle Licence Duty only. Transfer Fees are still charged as they are a fee that represents a cost recovery for the administration of the licensing system when a change of ownership is processed.
For more information visit the Department of Transport website.