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PDL - Oh yes - car must be fully road legal - the law classes it as a mechanically propelled vehicle as well as a motor vehicle and so if someone is steering it they are deemd to be driving it - needs insurance, tax, MOT, legally treaded tyres, working lights, etc. You've got to think that if you had an acident whilst towing it - it has got to be covered same as normal car is.
A trailer is not the same because it has no self propulsion and therefore is not a motor or mechanically propelled vehicle.
The same as if any car is parked on a highway - even if it never turns a wheel - it must be insured and legal, etc.
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