Retail & Consumer Goods UK-wide

Run a vehicle dismantler or salvage business

Dismantling, salvaging and scrapping vehicles is one of the most regulated parts of the motor trade. To depollute and scrap end-of-life vehicles you need an environmental permit and Authorised Treatment Facility status — only an ATF can issue the Certificate of Destruction — and to trade in scrap or salvage you need a scrap metal dealer licence.

Guide summary

You must hold an environmental permit with Authorised Treatment Facility (ATF) status before you can break, dismantle or scrap end-of-life vehicles. You also need a scrap metal dealer licence from your local authority to trade in salvaged parts or scrap metal. Depollute vehicles to the required standards, issue Certificates of Destruction, and keep records. Treating vehicles without these permits is an offence.

  • Get an environmental permit with ATF status before starting work
  • Only an ATF can issue a Certificate of Destruction to scrap a vehicle
  • Depollute all vehicles – remove fluids, batteries, airbags and tyres first
  • Apply for a scrap metal dealer licence from your local authority
  • Site licence fee: £500–£600; collector licence: £300–£400
  • Licence valid for 3 years – apply 6–8 weeks before you need it
  • Never pay cash for scrap metal – use cheque or electronic payment
  • Check and record the identity of everyone you buy scrap from
  • Treating vehicles without a permit is an offence – regulator can prosecute
  • Producer duties for end-of-life vehicles apply to manufacturers, not you
On this page

Related guides in Licensing & Permits

Breaking, dismantling and scrapping vehicles is a different business from selling or repairing them, with two operating gateways you must hold before you start: an environmental permit with Authorised Treatment Facility status, and a scrap metal dealer licence. The general waste duty of care in Run a compliant motor trade business applies on top of these.

Become an Authorised Treatment Facility

Depolluting, dismantling or scrapping end-of-life vehicles requires an environmental permit and Authorised Treatment Facility (ATF) status. Only an ATF may issue a Certificate of Destruction, which allows the DVLA to scrap the vehicle record. Depollution must meet the ELV technical standards — fluids, batteries, airbags and tyres removed first. This is devolved: the Environment Agency in England, Natural Resources Wales, SEPA in Scotland and NIEA in Northern Ireland. For how this fits the wider waste-permitting picture, see which waste management rules apply.

Get a scrap metal dealer licence

Trading in salvaged parts, scrap metal or motor salvage needs a site or collector's licence from the local authority. You must verify and record the identity of everyone you buy from, and you may not buy scrap metal for cash. The Scrap Metal Dealers Act 2013 applies in England and Wales; Scotland licenses metal dealers under the Civic Government (Scotland) Act 1982. The same licence covers car, van and motorcycle salvage.

Producer-responsibility duties for end-of-life vehicles fall mainly on vehicle manufacturers and importers, not dismantlers — if that is your business, see vehicle manufacturer end-of-life and restricted substances.

Next steps

Make sure the cross-cutting duties for your business are in place — see Run a compliant motor trade business — then confirm everything with the motor trade compliance checklist.