UK Auction Glossary

The words UK auction houses use in their catalogues and terms of sale, in plain English. Most UK surplus, including ex-MoD, council and insolvency stock, is sold by commercial auctioneers who add a buyer's premium and usually VAT to the winning bid, so the fee and tax terms matter most.

Reviewed 23 September 2026

Hammer price

The winning bid when a lot closes, before any buyer's premium, VAT or other charges. In an online timed sale the hammer price is the highest bid standing when the lot's timer runs out. It is never the total you pay.See: VAT and buyer's premium explained

Buyer's premium

A percentage of the hammer price that the auctioneer charges the winning bidder as its fee. UK auction houses set their own rate in their conditions of sale, and VAT at 20% is normally charged on the premium as well. The rate differs between houses and sometimes between sales, so read the sale's terms before bidding.See: UK auction sites compared, true-cost calculator

VAT (Value Added Tax)

The UK's sales tax, 20% at the standard rate. At auction it can apply twice: on the buyer's premium, and on the hammer price itself when the seller is VAT-registered and the lot is marked as carrying VAT. Catalogues usually flag VAT-able lots with a symbol or note. VAT-registered businesses can normally reclaim VAT shown on a valid VAT invoice; private buyers cannot.See: VAT and buyer's premium explained

Margin scheme (auctioneers' scheme)

An HMRC scheme for second-hand goods where VAT is worked out on the auctioneer's margin (its commission and premium) rather than on the full price. Under it, no separate VAT figure is shown on your invoice, which means a VAT-registered buyer cannot reclaim VAT on a margin-scheme purchase. Auction terms or lot notes say when a lot is sold under the scheme, so check them if reclaiming VAT matters to you.

Lot

One numbered item or bundle in an auction catalogue. A lot can be a single excavator or 'a quantity of' office chairs; you bid on and pay for the whole lot as described. Lot numbers also govern collection, since you collect by lot number.

Reserve

A confidential minimum price agreed between the seller and auctioneer. If bidding closes below it the lot is not sold (or is sold only if the seller accepts, often shown as 'subject to' or 'provisional'). Many surplus lots are offered without reserve; the catalogue or lot page says which.

Timed online auction

The format most UK surplus now uses: each lot has a closing time and you bid on the website until it ends. Most houses extend a lot's closing time when a bid lands in the final minutes, so a last-second bid does not win by surprise. You can usually leave a maximum bid and let the system bid for you in increments.See: how NCM, Eddisons and BPI run their sales

Live webcast (live online) auction

A traditional auction with an auctioneer on the rostrum, streamed online so remote bidders can bid in real time through the house's own site or a platform such as i-bidder or BidSpotter. Those third-party platforms can add their own surcharge on top of the buyer's premium.

Ex-MoD

Equipment and vehicles released by the Ministry of Defence as surplus. It is sold through appointed disposal contractors and specialist auctioneers, not by the MoD directly. Ex-MoD vehicles may come without a UK registration, in which case you register them with the DVLA yourself before road use.See: how to buy ex-MoD vehicles, Witham vs Ramco

V5C (vehicle log book)

The DVLA's registration certificate for a vehicle, showing the registration number, keeper and vehicle details. It records the registered keeper, which is not proof of legal ownership. When you buy a registered vehicle the keeper change is notified to the DVLA and a new V5C is issued to you. A vehicle that has never been registered in the UK (common with ex-military stock) has no V5C and needs a first registration application.

MOT

The annual roadworthiness test for most vehicles over three years old in Great Britain. You cannot drive or park a vehicle on the road without a valid MOT except to a pre-booked test or for repairs, and the fine is up to £1,000. Vehicles built or first registered more than 40 years ago are exempt unless substantially changed. Check the MOT history on GOV.UK before bidding: auction vehicles can come with a short or expired MOT.

SORN (Statutory Off Road Notification)

A declaration to the DVLA that a vehicle is kept off the road, so no vehicle tax is due. A SORN vehicle cannot be used on the road until it is taxed again. An auction vehicle may be on SORN, so plan to trailer it home or tax it (and have a valid MOT and insurance) before you drive it.

Plant

UK trade word for construction and industrial machinery: excavators, dumpers, telehandlers, rollers, generators and similar. 'Plant and machinery' sales are the core business of houses such as NCM, Eddisons, BPI and Apex. Plant is usually sold as seen with no warranty, and heavy items need a proper lift-out and haulage plan.See: UK plant and heavy equipment auctions

Sold as seen

The standard UK condition of sale for surplus: no warranty, no returns, and descriptions given in good faith only. The Consumer Rights Act 2015 does not treat you as a consumer for most purposes when you buy second-hand goods at a public auction you could attend in person, so your comeback is limited. That is why viewing days (or asking the auctioneer for more photos) matter.

Viewing

Set times before a sale when you can inspect lots in person, usually at the site where the goods sit. Many online sales still offer viewing by appointment. For vehicles and plant it is the only reliable check on condition.

Collection (clearance)

The window after the sale when buyers must remove their lots, usually a few set days at the sale site and only after payment clears. Auctioneers can charge storage or treat an uncollected lot as abandoned after the deadline. Large items may need your own contractor with insurance and risk assessments (RAMS) before you are allowed on site.

Insolvency sale

An auction of a failed business's assets on behalf of an administrator or liquidator. Much of the stock on UK industrial auction sites comes from insolvency rather than government, which is why we show the seller on each lot where the auctioneer names one.See: the UK sources we index

Government and council surplus

Assets that public bodies no longer need: fleet vehicles, grounds and highways plant, IT and furniture. The UK has no single government auction site; bodies contract commercial auctioneers. We do not currently index any police force or council auction source directly, so council lots appear only where an auctioneer we index is selling them.See: UK surplus auctions explained