In my experience (multiple trips with UK cars) there is absolutely no issue driving a UK registered car in Iran. Authorities are only interested in your passport, visa and sometimes carnet.
I have also never heard of anyone having trouble in Iran because of a UK registered vehicle. If there is any such report it would be interesting to share.
Hardly anyone in Iran would recognise UK license plates. So even if there was some issue driving a UK car in Iran, which there isn't, you would most likely not be noticed.
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EurasiaOverland a memoir of one quarter of a million kilometres by road through all of the Former USSR, Western and Southern Asia.
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