Remember however. That if you take a vehicle out of the UK for 12 or more months DVLA require that you de-register it, as exported and it is re-registered in the country you spend the most time in. Other countries such as Spain require that vehicles that are imported for longer than 6 months be re-registered there.
Europe is not joined up. The vehicle must comply with the laws of the country it is registered in at all times. So even a new vehicle that doesn't need a MOT for 3 years still needs to be in the UK for at least one day on the year.
I have friends that actually do as I have stated. They buy new, paying full VAT. They then fill and post off the V5/VSC4 Notification of Permanent Exporting etc. DVLA keep a Registration record.
Insurance can be a bit problematical but they get an Export of Vehicle Specialist cover. Once they get overseas they let the current VED run out.
Insurance Renewal is done online Certificate printout in an Internet café, times past it was Post Restante. If they were to get temporary
insurance difficulties then I expect they'd do what I've done plenty of times..... Assurances Frontier, or visit a Gib. broker and get a policy underwritten by a Spanish Co. On return to the UK they go through Vehicle Import Formalities, not too difficult, as they've paid all dues and importantly retain the VAT Receipts, and apply for an updated V5 plus paying the VED.
They reckon this faffing around is preferable to a return trip from perhaps Greece, Morocco or southern Spain. They are well enough off to renew their m/home every three years, they are British and resident in the UK. If the Spanish authorities were to question them on whether they had been in the country over 6 months {they never have done) then they would have been in Portugal/France/Morocco recently wouldn't they!
BTW no legal MOTs obtainable for UK reg vehicles in "British" Gib in case any one is wondering!! And the Brit. hombre selling UK MOTs on the costas not so long ago is now holidaying at HM pleasure!