Road tax, or Vehicle Excise Duty (VED), is an annual fee UK drivers pay to use public roads. In certain situations, you can cancel it and get a refund.
Key takeaways
- There is no separate way to cancel car tax. You report the underlying change, such as selling, scrapping, or declaring a SORN, and the DVLA cancels it automatically.
- Most changes can be reported online via GOV.UK. You only need to phone or write if you prefer to.
- Refunds cover full remaining months only, not the current month or any partial months.
- If you no longer have your V5C, you can order a replacement for £25. It usually arrives within 5 to 7 working days.
- The sooner you report, the better. Even a short delay can cost you a full month's refund.
What is car tax?
If you drive a car in the UK, you pay road tax. It's a yearly tax collected by the DVLA, which the government uses to help improve roads and traffic. You can check if your car is taxed with our car tax tool.
Need a refund? You might get one if you cancel your tax, usually when you no longer own the car. We'll explain more about refunds later.
What you pay depends on things like your car's tax band, fuel type, age, and value. Paying road tax is a legal requirement in the UK. If you don't, you face consequences. Get caught, and you could get fines up to £1,000. Your car could even be clamped or impounded.
Some vehicles don't pay road tax. This includes disabled passenger vehicles, some cars made before 1 January 1986, and those with a Statutory Off Road Notification (SORN). Find a full list of vehicles exempt from tax on GOV.UK.
Even if you're exempt, you still need to tax your car.
How do I cancel my car tax?
You usually don't need to cancel your car tax separately. Instead, you need to tell the DVLA when something happens to your vehicle, such as selling it, declaring it SORN or exporting it permanently. The DVLA will then cancel your tax and, where applicable, automatically refund any full remaining months of tax you've paid for but no longer need.
What you need to do depends on what has happened to your car.
Sold or transferred your car?
Tell the DVLA that you've sold or transferred the vehicle. If you're reporting the sale online, you'll generally need the 11-digit document reference number from your V5C logbook. Your tax will end on the date you sold or transferred the car, and the DVLA will automatically refund any full remaining months of tax you're entitled to.
Declared your car SORN?
If you're taking your car off the road, you can make a SORN online through GOV.UK. Your vehicle tax will stop when the SORN takes effect, although the start date can depend on when you apply. Once your car is SORNed, it must generally stay off public roads. See our guide to how to SORN your car.
Scrapped your car?
If you've scrapped your car at an Authorised Treatment Facility (ATF), the facility can usually notify the DVLA on your behalf. You may still be able to report the vehicle as scrapped if you don't have your V5C logbook. You can read more in our guide on how to scrap a car.
Exported your car permanently?
If you're permanently exporting your car, you need to tell the DVLA. Your vehicle tax will end when the DVLA records the permanent export, and you may be entitled to a refund for any full remaining months.
Your car has been written off?
If your insurer has written off your car, the steps required may depend on what happens to the vehicle next. Don't assume your insurer has notified the DVLA on your behalf. Check whether the DVLA has been informed and follow the relevant guidance if further action is needed.
Need extra help?
If you can't use the DVLA's online services, you can contact the DVLA for assistance:
Phone: 0300 790 6802
Post: Vehicle Customer Services, DVLA, Swansea, SA99 1AR
Check the DVLA's official contact page for current telephone opening hours.
If you've lost your V5C logbook, you may need to apply for a replacement before you can report a change to the DVLA. A replacement V5C generally costs £25 and usually takes around 5 to 7 working days to arrive, although processing times can vary. See our guide to how to replace a lost V5C logbook.
Am I eligible for a car tax refund?
You could be due a car tax refund in these situations. For most, you'll need to let the DVLA know:
- You sold or transferred your car.
- Your car was written off by an insurance company.
- You registered your vehicle as SORN.
- You scrapped your vehicle.
- You exported your car out of the UK.
- Your circumstances changed, meaning you're now exempt from road tax.
- Your car was stolen (but remember to tell the DVLA you no longer own it).
If your reason isn't on this list, you can always contact the DVLA directly to be sure.
How do I get a car tax refund?
Once you've told the DVLA your car is off the road, they'll automatically process your refund. You'll get a cheque in the post, sent to the address on your vehicle's log book. So double-check that address!
If you pay by direct debit, the DVLA cancels this automatically. You'll get a refund for any full months you've already paid for.
If you paid upfront, the DVLA sends you a cheque for the full months of tax you'd already covered.
How much of a road tax refund will I get?
The DVLA calculates your refund based on the full months of tax remaining from the date they get your cancellation request.
For example, if you sell your car with 3 full months left on your yearly car tax, you'll get a refund for those 3 months.
How long will a DVLA tax refund take?
Your car tax refund cheque generally takes up to 6 weeks to arrive, according to the DVLA. If it hasn't arrived after this, contact the DVLA. If your cheque has any errors, such as a wrong name, return it by post and get in touch with the DVLA.
What happens to my car insurance if I sell my car?
What happens to your insurance depends on whether you're getting a new one.
If you're selling your car and not replacing it, you can cancel your policy. You might get a partial refund, but expect a cancellation fee. Check with your insurer for the exact details of your policy.
If you're replacing your car, you don't always need a new policy. You can usually update your current one to cover your new car.
But updating your policy isn't always the cheapest way to insure your new car. It's smart to compare quotes to see your options. We make it easy to compare car insurance for your new car, so you can save time and money.
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