You get a car tax refund for every full calendar month left on your tax when you sell the car, declare it SORN, scrap it, export it or it is stolen, as long as DVLA is told. You don't need to apply separately: DVLA works out the refund and sends it to the name and address on the V5C log book, and any Direct Debit is cancelled automatically.
This guide explains when you get a refund, how much it will be, how it's paid and the common reasons people don't get the money they expect.
When you get a car tax refund
Road tax (vehicle excise duty) belongs to the keeper and the vehicle, not the car itself, so it stops when you no longer keep or use the car. You're due a refund for the full months left when:
- You sell or transfer the car and tell DVLA about the new keeper.
- You declare the car off the road (SORN). See what a SORN is.
- You scrap it at an authorised treatment facility, which gives you a certificate of destruction and tells DVLA.
- You export it and tell DVLA it has left the UK.
- It is stolen, once it has been reported and DVLA has been told. The timing depends on the insurance claim, so check the current rules on GOV.UK.
- It becomes exempt from car tax, for example when it is used by someone who qualifies for a disability exemption.
The official rules are on >GOV.UK: get a refund of vehicle tax.
How much refund will I get?
You get the tax back for each full calendar month left after DVLA receives the information. There is no refund for the month you're in.
| Example | Refund |
|---|---|
| Tax paid to the end of March, car sold and DVLA told on 10 October | November to March: 5 months |
| Same car, DVLA told on 31 October | Still November to March: 5 months |
| Same car, DVLA told on 1 November | December to March: 4 months |
So telling DVLA at the end of a month rather than the start of the next can make a difference of a whole month.
If you pay by Direct Debit
The Direct Debit is cancelled automatically when DVLA is told. If a payment has already been taken for a month you won't use, it is included in the refund.
How the refund is paid
DVLA sends the refund to the name and address on the vehicle log book. That is why your V5C address must be up to date: a refund sent to an old address is easy to lose. If you've moved, see how to change the address on your V5C before you sell or SORN the car.
Refunds usually arrive within a few weeks. If yours hasn't, contact DVLA with the vehicle registration and the date you told them about the change.
Buying a car: the tax doesn't come with it
The other side of the refund is that tax doesn't pass to a new keeper. When you buy a car, the seller gets the refund and you must tax the car before you drive it, even if the seller says it is "taxed until March". See why vehicle tax doesn't transfer when you buy a car, and check a car's current status with a car tax check.
Why you might not get the refund you expect
- DVLA wasn't told. If the sale, SORN or scrapping isn't reported, the tax keeps running and you're still the keeper.
- The car went to an unauthorised scrap dealer. Only an authorised treatment facility can issue a certificate of destruction. Without one, DVLA may still have you as the keeper.
- Part months. The month you're in is never refunded.
- The address on the V5C was out of date. The money went to your old home.
- You already had a refund. Each month can only be refunded once, so a SORN followed by a sale doesn't give a second refund.
Selling to a dealer or part exchanging
When you sell to a dealer, part exchange your car or use a car buying service, the business normally tells DVLA that it has taken the car into the motor trade. The refund still comes to you, the keeper who paid the tax. Before you hand over the keys, agree who will tell DVLA, and ask for confirmation once it's done. If you're unsure it has happened, you can tell DVLA yourself online with the 11-digit reference number from your V5C. The refund is worked out from the date DVLA is told, so a delay by the buyer can cost you a month.
Keep a note of the date, the buyer's details and the mileage when the car changes hands. If a parking ticket or speeding notice arrives later, it is your proof that you were no longer the keeper.
Car tax refunds and your next car
If you're replacing your car, budget for taxing the new one straight away: the refund on your old car usually arrives after you need to pay. Our car tax calculator shows how road tax is worked out for different cars, so you can compare before you buy.
FAQs
Do I need to apply for a car tax refund?
No. DVLA sends it automatically once it's told the car has been sold, declared SORN, scrapped or exported.
How is the refund worked out?
You get the tax back for every full calendar month left after DVLA receives the information. The month you're in isn't refunded.
Where is the refund sent?
To the name and address on the V5C log book, so keep your address up to date.
What happens to my Direct Debit when I sell my car?
It is cancelled automatically when DVLA is told, and any payment for an unused month is refunded.
Does the new owner get my tax?
No. Tax doesn't transfer. The new keeper has to tax the car before driving it, and you get the refund.