Tomcat,
Yes, in the mists of time motor vehicles were registered by the district council, the local government representative body. They issued the "Log Book" and the registration number. Each council had a particular group of letters, so you could identify where the vehicle was first registered from the number plate. You paid your road tax (originally called road fund, yes a fund for improving the roads) and they issued a tax disc which had to be displayed, so the powers that be could see the tax had been paid. When the vehicle changed hands, the log book was updated by simply filling in the next owner, and getting the book officially stamped. As you note, the log book stayed with the vehicle, and over time in some cases suffered as all paper based things do. You would get books rumpled, crumpled, ripped, held together with Scotch tape etc.
Eventually this system became ripe for streamlining and the new Driver and Vehicle Licencing Authority (DVLA) became the new centralised government organisation to handle UK Vehicle everythings.
Bikerbobs post above shows the changes in more detail. Road tax became Vehicle Excise Duty (VED)
The log books were scrapped, and replaced by a single sheet paper vehicle registration document. Every time the vehicle was sold, the new owner got a new document. This has grown to become a multi page booklet, with tear off sections you send here and there as appropriate.....scrapping, selling to a dealer, exporting, new owner details, etc. The new owner gets a new registration document. The VED rules now mean that a change of ownership gathers two months worth of cash for the same month, as part months are not refunded, and the new period starts on the first of the month, not part way thro'. How nice is that?
At some stage, so subtle that we hardly noticed, the DVLA became a "Government Agency" Then it saw itself as a money making enterprise. My guess is that someone has found the stash of returned log books and arranged for them to enter the memorabilia market.
Genuine logbooks (and for that matter old tax discs) are worth money to certain of the lower echelons of our society, as these official documents are the key to adding value to an otherwise anonymous pile of scrap metal, if you understand my meaning.
The DVLA gets a bad press, as they supply ownership details to almost anyone, for a fee. Particularly to anyone operating a wheel clamping parking business.
These days the tax disc is no longer used. Authority relies on Automatic Number Plate Recognition (ANPR) to check the vehicle is street legal. The trend is for those opting out of the system to simply use someone else's number. So authority tightened the rules on number plate supply. Makes it a bit of a hassle proving identity at your local Halfrauds, but no problem for the real miscreants.
As a final note, vehicles over 40 years old (on a rolling basis) can now be classed as "Historic", meaning they don't have to pay VED, and are subject to less stringent standards. In fact they are exempt from any official inspection, as I understand the rules, though lots of owners have voluntary annual test (MOT) to satisfy themselves and their insurance company that the vehicle is safe.
Apologies for drifting a bit off topic, but now you know the basics. Dealings with the DVLA would be a section in itself!
Swarfy