How to cancel road tax and get a refund if you sell your car or take it off the road

With the axing of paper tax discs, the way motorists claim refunds has also changed.

Here’s our easy-to-follow  guide detailing how to get your money back if you’re no longer liable to pay for VED road tax on a vehicle.

When can I get a refund?

Broadly speaking, you can get a refund by telling the DVLA that you no longer have the vehicle, or that it’s off the road.


Check your car tax, MoT and insurance here


What changes entitle me to getting my cash back?

You must contact the DVLA if any of the following apply to you and the vehicle in question:

1) It has been sold or transferred to someone else

2) The car has been taken off the road, for example you’re keeping it in a garage – in this case you’ll get a Statutory Off Road Notification (SORN)

3) The vehicle has beeb written off by your insurance company

4) It has been scrapped at a vehicle scrapyard

5) The car was stolen

6) It has been exported out of the UK

7) The car is registered as exempt from vehicle tax


All about how car tax has changed


How much money will I get back?

Once you tell the DVLA about a genuine change in circumstance, you’ll get a refund for any full months of remaining tax.

What happen when I cancel my road tax with the DVLA?

1) Your vehicle tax will be cancelled by the DVLA. Direct Debits will be automatically cancelled so no need to call your bank.
2) You’ll get a refund in the form of a cheque for all full months left. This will apply from when the DVLA gets your information.
3) There will be no refund of the following:
–any credit card fees
–the 5% surcharge on some direct debit payments
–the 10% surcharge on a single 6 month payment

What if the refund does not arrive?

You’ll need to give it six weeks, but if nothing arrives you should contact the DVLA here


Check new higher rates of road tax here


What if the amount on the refund cheque is wrong?

You will need to return your cheque to:

Refund Section
DVLA
Swansea
SA99 1AL

If you don’t get a new cheque within four weeks, you should contact the DVLA here

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1 comment for “How to cancel road tax and get a refund if you sell your car or take it off the road

  1. Jean Voorjans
    06/07/2017 at 10:10 am

    I sold my car to a scrap yard and they issued me with the correct paperwork. The DVLA sent me the cheque for the remaining years tax. Today I have received a notice to retax the car. Do you people actually talk to each other? Also there is no number given on the reminder if who to contact in thus exact situation and your website just goes round in circles.

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