I dont think so? Needs a darn great big 'On tow' sign and a proper towboard though. I never got any hassle for towing, and I cant remembe the DVLA stating anything about it on their website.
You do, however, need to have the correct licence. I think if you took your test before 1997 then you automatically are cleared to tow, BUT after 1997 you have to have another section for towing which you need to take a test for.
Not strictly true, you can tow a vehicle w/out MOT/tax/insurance if it is trailored or dolleyed. You will also need to display the number plated of the towing vehicle and also a clear "on tow" sign.
Also, with regards to those of us who have a post '97 license, you can tow. What you need to take the towing test for is if you are towing a vehicle and the combined weight of the towing vehicle and max loaded weight of the trailer is sub 3,500 kg's. Also the max loaded weight of the trailor cannot be greater than the 'wet' weight of the towing vehicle as displayed on the VIN plate.
Example: My car has a 'wet' weight of 1,500kg's, therefore the max that I can legally tow with my post '97 license is a trailor that can have a maximum loaded weight of up to 1,500kg's (the weight of my car).
Alternately, if my car weights 2,000kg's then the maximum weight of the trailor can be 1,500 kg's (3,500 kg total combined weight of trailor and towing vehicle).
All this info is on the DVLA website, you just have to look for it as, like all government websites, it is conusing and hard to find what you actually want.
HTH, Craig