Do I get a car tax refund when I sell my car?

How you get the refund

You get it by telling DVLA you no longer have the vehicle. GOV.UK lists the cases: sold or transferred to someone else, taken off the road with a SORN, written off by your insurance company, scrapped, stolen (you apply separately), exported out of the UK, or registered as exempt from vehicle tax. It says there is no other way to cancel your vehicle tax.

What you get back, and what you do not

DVLA cancels the tax, cancels any Direct Debit automatically and sends a refund cheque for any full months left, calculated from the date DVLA gets your information. The cheque goes to the name and address on the V5C.

You do not get a refund of any credit card fees, the 5% surcharge on some Direct Debit payments or the 10% surcharge on a single 6 month payment. For the first tax payment on a vehicle, the refund is based on whichever is lower of that first payment and the rate for the second payment onwards.

If the refund does not arrive

Contact DVLA if you have not received your refund cheque after 8 weeks. If the cheque is in the wrong name, return it to DVLA and tell them the right name, and contact DVLA if you have not got the replacement after 4 weeks.

Telling DVLA you have sold it

GOV.UK’s online service changes the registered keeper and sends a log book to the new keeper, and tax is cancelled and refunded as above once you have told DVLA. The tax does not pass to the buyer, who must tax the car before driving it. Our answer on telling DVLA you have sold your car sets out the steps.