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Can't you just use the document ref code on the green slip, then not send the log book to the dvla. It'll be marked as taxed and when its sold fill in the log book and send it off with the new buyers details.
To get their tax refund they would need to be the registered keeper, well previous when passed on.
1. Tax it using the new green slip
2. You can transfer the vehicle in your name or whoever online and you will receive a new V5C
3. Once you sell the vehicle you will receive a refund of any full remaining months left on the vehicle excise duty.
If you don't, then no refund - they don't have your details.
