It is illegal as you cannot do anything to obscure the number plate. Even the ones that sopposedly put a bright flash are illegal as you have fitted something for the express purpose of preventing the number plate from being read by a speed or other traffic camera. You can be fined for failing to keep your number plate clean, and even the Victorian number plates (the first reflective green on white ones) that fade will see you get a fine if you do not get them replaced when they fade. Generally you will get a first caution, and the caution is recorded. The next time you get picked up you will get a fine.
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