As of 1st October this year the paper tax disc will cease to be, being replaced by a DVLA online system. Payments will be registered to the vehicle registration number, that will then be checked every time you’re picked up by a number plate recognition camera on the road. The wider impact of this is seen when buying and selling vehicles, as the tax disc is no longer transferable and will have to be renewed by the new driver as soon as the sale has gone through. The seller will be the person responsible to inform the DVLA of a change of ownership, with a potential £1,000 fine in place if the correct transfer procedures aren’t carried out.
You can find more details here at telegraph.co.uk