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Thanks all for your comments here. I'll get on the case...

Will they be issuing a refund with a cheque like they do now or will they just charge the customer they extra between the price of the new tax for the new car and what they are getting a refund for? In a way it means that tax isn't a problem for dealers anymore as it's up to the customer to deal with it but how can the customer tax the car if it isn't yet registered in their name? Does the car even have to be registered in their name to get a tax disc? If it doesn't dealers can then tax a car, use it for a few months and claim a refund (like taxing it on the green slip at present) Have any dealers been consulted on this issue? Maybe a job for CD magazine to see if they can get an interview with the DVLA to explain how us dealers will be affected.