I don’t know where you are getting your information from, Karl. I suspect it might be from somewhere like this:
https://www.dvla-contact-number.co.uk/the-differences-between-the-registered-keeper-and-owner-of-a-vehicle/
That is NOT an official DVLA web page. DVLA information is part of “.gov.uk” .
The DVLA is not interested in ownership. It keeps no register of owners, only of “Registered Keepers” (RKs). The Registration Document (V5C) only makes mention of ownership in the negative (i.e it is not proof of ownership).There is no legal requirement for the owner of a car to be its RK. Similarly there is no requirement for the RK to have day to day possession and control of the car nor to use it. The RK can, in fact, be virtually anybody the owner chooses. Almost all company vehicles are registered with either the company or more often these days a leasing company or a finance company. This completely at odds with the advice given on the fake DVLA site which says:
"For example, this is the case with a company car. The car is owned by the company, but the registration documents (the V5) should show the registered keeper to be the person who uses it on a daily basis, such as an employee."
The ongoing responsibilities that rest with the RK are for taxing the vehicle, insuring it (so as to comply with the “continuous insurance” legislation, see below) and for responding to any enquiries from the police if the vehicle is alleged to have been involved in a traffic offence and was not stopped at the time. When such enquiries are made it is not unusual for there to be four requests made for information before the driver is reached, e.g. Finance Company – Leasing Company – Employer – Employee (Driver). The only large scale exceptions to this general convention are cars provided under the “Motability” Scheme. These are registered under the user’s name.
//…the system is not meant to be interested in ownership except it says it is, registration is not officially linked to ownership but the registration authority contradicts itself.//
Where is this stated? Where is this contradiction evident?
//…in the UK the driver is insured, not the car as such.//
That is not correct. Under the “continuous insurance” legislation all vehicles that are not declared off the road (by means of a SORN) must have in place an insurance policy which provides the cover required under the Road Traffic Act. The policy must mention the vehicle specifically (by its registration mark). This is required regardless of who drives it or even whether it is driven at all. The question of who is allowed to drive it is a separate issue between the proposer and the insurer. Few policies allow “any driver” these days because, as barry says, drivers with bad driving records were using cars insured by someone with a good record. As well as that too many eighteen year olds were driving high powered cars which were insured by their fathers with an “any driver” policy.
As far as this question goes it would probably be simpler in the long run for Henry's father to transfer the registration of the car to his wife. He can avoid losing a months tax as a result of that transfer by declaring the car SORN towards the end on the month that the tax expires and then transferring the ownership early in the next month. This will need him to have somewhere to keep it off the road for a couple of days.