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Sadly the Police cannot seize vehicles without MOT or valid tax.
I assume you refer to S.165 Road Traffic Act 1988 which allows Police to seize motor vehicles being driven on a road where officers must have reasonable cause to believe the driver is uninsured or driving outwith the terms of his licence or in fact has no licence at all. This does allow the OWNER, not necessarily the same as the driver, at the time of seizure a 7 day period in which to claim their vehicle. To do that they must produce proof of ownership, a valid drivers licence and a valid certificate of insurance sufficient to cover third party risks.
Costs are £105 for uplift and a further £12 a day storage with an aditional £35 for collection of the vehicle out of office hours.
If the driver of the vehicle drives without insurance and they are commiting no other offences they are also issued a conditional offer of fixed penalty which is a £200 (might be £250 would have to check) fine and 5 penalty points which is the minimum penalty set by the Courts. If additional offences are noted they are reported direct to the Court. This is regardless of wether they reclaim the car.
The release fee is paid to the garage not the Police.
DVLA have the power to seize vehicles not displaying current tax for which a release fee of £80 is required along with the production of a valid tax disc. They only do this after the vehicle has been clamped and no contact made from the owner following a 24 hour period. The back tax must be paid.
Currently in coups's garage:
2002 Renault Scenic 1.6 16v