Car Tax Refund

When it comes to taxes most of us are looking for ways to pay no more than we owe, or even boost our tax refunds. So If you live in the UK and you sold or transferred your car to someone or even scrapped your used car and there’s still some road tax left on your car, then the DVLA will refund any complete month that remain.

Until 2014, any car that was sold before it ran out of tax, the tax will be passed on to the new owner, the DVLA will now refund all the tax for the complete months that remain. To Cancel your vehicle tax, you have to inform DVLA you no longer have the vehicle or it’s off the road. You get a refund for any full months of remaining tax.

Who is eligible?

You Made a SORN

If you are not planning to use your vehicle any more on the public road the you will have to make a SORN (Statutory Off Road Notification), which is something you do when you take a vehicle ‘off the road’ and you want to stop taxing and insuring it. The DVLA will automatically send you a tax refund for the remaining months that your tax payment wouldn’t be used. If you haven’t made a SORN yet, you could apply for this online

You Transferred or Sold Your Vehicle

You must let DVLA inform if you sold or transferred your vehicle. Do this before you even send the V5C by post. The document is issued by the DVLA and tracks the registered keeper of the vehicle, rather than the owner. When a vehicle is transferred, exported, scrapped or had major modification (new engine, chassis or factors affecting the taxation class) the form is returned to the DVLA, who issue a new document, if appropriate, with the amended details.

You would need the reference number on the V5C for this process. In case you’re acting on behalf of the seller, you would also need their permission. Go to in order to start the online process. You could do this from 8:00am to 6:00pm, Monday to Friday.

Your Vehicle Was Stolen

If your vehicle was stolen, you should let the local police know right away. You would be asked for the vehicle’s registration number, colour, model and make; then you would be given a crime reference number. You’ll need this reference number when claiming for your auto insurance and applying for a DVLA tax refund. Apply for a tax refund only if your vehicle is not found in one week after it was stolen. Call DVLA at 0300 790 6802 and ask for a V33 form that you need to fill up and send it to the following address: Refund Section DVLA Swansea SA99 1AL

It Was Scrapped

Vehicles that can no longer be used must be scrapped at an ATF or authorised treatment facility. If you wish to remove and keep some parts before sending the vehicle to an ATF, you must make a SORN first. You’ll need to pay £80 for this. This service is available from 8:00am to 6:00pm, Monday to Friday. Once done with removing the parts you need, you may take the vehicle to an ATF. Go to to find the nearest ATF in your area. Enter your postcode on the appropriate field and click “Find”.

How you will I get the refund

If you pay for your car tax by Direct Debit this will be cancelled automatically, if you didn’t then You’ll automatically get a refund cheque for any full months left on your vehicle tax. The refund is calculated from the date DVLA gets your information. The cheque is sent to the name and address on the vehicle log book.

How much will the refund be

The amount that will be refunded to you will be based on the date that the DVLA receives the confirmation of cancellation. This is why it is very important to contact the DVLA as soon as possible you don’t risk losing any money.

If your refund doesn’t arrive Contact DVLA if you haven’t got your refund cheque after 6 weeks.

The DVLA says that you will not be refunded for the following:

  • any credit card fees
  • the 5% surcharge on some direct debit payments
  • the 10% surcharge on a single 6-month payment

If your refund doesn’t arrive Contact DVLA if you haven’t got your refund cheque after 6 weeks.