What happens to an operator licence in liquidation or administration

An operator licence cannot be sold or transferred, so it does not pass to a buyer when a haulage company enters liquidation or administration. A traffic commissioner can revoke it. The liquidator or administrator can apply to keep it running for up to 12 months, or 18 months in special circumstances. Anyone buying the business needs a new licence.

This guide covers goods vehicle licences in Great Britain, with a short note on PSV licences. The law and guidance were checked on GOV.UK and legislation.gov.uk on 2 October 2026.

The licence holder must tell the traffic commissioner

Goods licence holders must report relevant changes "within 28 days" (goods guide). The list includes the case where "the company, or any of the people involved in the management of the company faces personal or company bankruptcy, liquidation or a similar situation". GOV.UK warns that failing to notify "may lead to regulatory action being taken against you and the operator's licence".

The Senior Traffic Commissioner's Statutory Document 5 asks for earlier notice. It says directors "should notify the Office of the Traffic Commissioner as soon as administration becomes a distinct possibility".

What the law says about insolvency

Three provisions do most of the work.

Insolvency is a ground for revocation. Section 26 of the Goods Vehicles (Licensing of Operators) Act 1995 lets a traffic commissioner revoke, suspend or curtail a licence where the holder, "being a company, has gone into liquidation, other than voluntary liquidation for the purpose of reconstruction" (s.26(1)(g)). For an individual, bankruptcy or a debt relief order is the ground.

The licence is not property you can pass on. Section 48 says "an operator's licence is neither transferable nor assignable" (s.48(1)). The rest of section 48 lets regulations allow someone else to carry on the business under the licence for a set period.

Regulation 31 is that temporary route. It applies when a company goes "into liquidation or entering administration", when a receiver or manager is appointed, and on the holder's death, bankruptcy or loss of mental capacity (reg. 31). A traffic commissioner may then direct that "a person carrying on the trade or business of the actual holder" is treated as the licence holder. The direction lasts no longer than 12 months, or 18 months "if it appears to the traffic commissioner that there are special circumstances". For a standard licence, these powers are also subject to the time limits for putting things right in Article 13.1 of Regulation (EC) 1071/2009.

Who can apply to keep the licence running

Only the insolvency office-holder can apply. The Senior Traffic Commissioner's summary says: "For companies, only the official liquidator, administrator, or receiver can apply whereas former directors cannot."

Statutory Document 5 adds detail:

• The application can be made only after the company enters liquidation or administration, not before.
• The applicant must be carrying on the company's own business, not a separate business.
• An administrator who decides not to carry on the transport business "should take immediate steps to surrender the licence and to return the discs".
• An administrator who does nothing "should not be surprised if the company is called to a Public Inquiry".
• A traffic commissioner may hold a hearing before deciding.

Once a company is dissolved, it no longer exists in law. Statutory Document 5 says the matter can then go straight to the traffic commissioner for revocation, without the usual written proposal.

Events and what happens to the licence

What revocation means for drivers and customers is covered in curtailed, suspended and revoked licences.

Buying a haulage business out of insolvency

A buyer gets the lorries, the customers and perhaps the yard. It does not get the licence. The goods guide says licences "are not transferable" and "A new licence for the new entity must be obtained before operating."

The yard can move more easily. Schedule 4 of the 1995 Act lets a new applicant take over an operating centre already on another licence without advertising the application (Schedule 4). GOV.UK lists the conditions (goods guide):

• the centre must be on one current, valid licence when you apply, and it comes off that licence when yours is granted
• you can be authorised for no more vehicles than the donor licence specified at that centre
• conditions transfer with the centre, and you must repeat its undertakings
• the traffic commissioner decides; a site with a history of objections may be refused

Our operating centre rules guide explains the wider rules. For everything a new licence needs, see how to get an operator licence.

Traffic commissioners also look at who is behind the buyer. Statutory Document 5 says pre-packaged purchases by former directors "may be relevant to the consideration of their fitness or repute".

PSV licences

Bus and coach licences follow different law. Section 57 of the Public Passenger Vehicles Act 1981 says a PSV licence "is not assignable" and lets a traffic commissioner defer its termination for up to twelve months, or eighteen in special circumstances (s.57). Statutory Document 5 says administrators of companies holding PSV licences cannot apply under section 57. Directors should tell the Office of the Traffic Commissioner as soon as administration becomes a possibility, so it can advise on the effect.

If you use a haulier that may be insolvent

A company in liquidation or administration can still show a valid licence in the DVSA file until a traffic commissioner acts. The licence record and the company record are kept by different bodies, so check both.

Our haulier insolvency watch lists operator licences held by companies that Companies House shows as in liquidation, administration or receivership, dissolved, or overdue with accounts. It covers companies only. In the DVSA operator licence data, file dated 7 October 2026, limited companies and LLPs held 53,897 licences.

You can run a free operator licence check on any haulier before you book. To hear about changes without checking by hand, HaulierScope monitoring puts the hauliers you use on a watchlist and sends weekly alerts when a licence changes. Our compliance checklist lists what operators must report and when.

Frequently asked questions

What happens to an O licence when a company goes bust?

It does not pass to anyone else. Liquidation is a ground for revocation under section 26 of the Goods Vehicles (Licensing of Operators) Act 1995. The liquidator, administrator or receiver can apply under regulation 31 to carry on the business under the licence for up to 12 months, or 18 in special circumstances. If no one applies, the licence is surrendered or revoked.

Can an operator licence be transferred to a new company?

No. Section 48 of the 1995 Act says an operator licence "is neither transferable nor assignable". A new company, including one formed to buy an insolvent business, must apply for its own licence before it operates. It may be able to take over the old operating centre under Schedule 4 without advertising, on the same terms, if the traffic commissioner agrees.

Can a haulage company keep running lorries in administration?

Only with the traffic commissioner's authority. Statutory Document 5 says an administrator must decide whether to carry on the transport business. If it does, it must apply under regulation 31. If it does not, it should surrender the licence and return the vehicle discs straight away. An administrator who does nothing risks a public inquiry for the company.

Can former directors apply to keep the licence?

Not for a goods licence. The Senior Traffic Commissioner's guidance says only the official liquidator, administrator or receiver can apply under regulation 31, and former directors cannot. The application must be signed by the office-holder or come with their written authority. PSV licences follow section 57 of the Public Passenger Vehicles Act 1981, where the rules differ.