Relevant quotes:
"Scrapping your vehicle:
You must take your vehicle to an authorised treatment facility who will make sure that it’s dismantled in an environmentally friendly way."
AND:
"If you have broken up the vehicle yourself, you must either continue to tax it or tell the DVLA that you are keeping it off the public road. You can do this by making a SORN (Statutory Off Road Notification). You will need to make a SORN every year until you have taken it to an ATF, or told DVLA that you longer have it."
Source:
http://www.direct.gov...ertificate/DG_4022057
You don't have to scrap a vehicle to reclaim the unused road fund tax. You can simply sell it without tax. The purchaser could then declare SORN and use the vehicle off-road.
However, with the current high prices for scrap metal, it's probably unlikely that the racing enthusiast will give you a higher price than an authorised treatment facility anyway. This ad appeared in the programme for last year's Southend Air Show. The price of scrap has gone up since then!
http://i40.tinypic.com/wunxpu.jpg
Chris