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Tax Refund · VED · DVLA

Vehicle Tax Refund Guide

DVLA automatically refunds unused vehicle tax when you sell, SORN, scrap or export a vehicle. Here is exactly how the refund is calculated, when to expect it, and what to do if it does not arrive.

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The short answer

Vehicle Tax Refund Guide

DVLA automatically issues a VED refund when you cancel tax — by selling, SORNing, scrapping or exporting. Refunds cover full calendar months only (not the current or partial month). The cheque is posted to your V5C address within 4–6 weeks. No application needed. Tax cannot be transferred to another vehicle.

When refunds apply

When DVLA Issues a Refund

Reason for cancellationRefund automatic?What to do
Selling the vehicleYesNotify DVLA of sale via V5C — refund issued automatically
Declaring SORNYesDeclare online; refund issued for full months remaining
Writing off / insurance total lossYesInsurer notifies DVLA; refund issued automatically
Exporting permanentlyYesNotify DVLA of export; refund issued automatically
Scrapping (Certificate of Destruction)YesATF notifies DVLA; refund issued automatically
Transferring to different vehicleN/A — not possibleTax cannot transfer — must re-tax new vehicle separately
Common mistakes

Common Mistakes That Delay Refunds

Outdated address on V5C — cheque goes to old address. Update DVLA before cancelling tax.
Not notifying DVLA of sale — tax not cancelled, no refund issued. Always notify DVLA when selling.
Handing V5C entirely to buyer without retaining and posting the keeper section — DVLA never receives notification.
Expecting a partial-month refund — DVLA refunds full months only. Cancel early in the month to maximise refund.

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Questions & answers

Frequently Asked Questions

How does a vehicle tax refund work?
When you cancel vehicle tax — by selling the car, declaring SORN, writing it off, or exporting it — DVLA automatically cancels the tax and issues a refund cheque for any full calendar months remaining. You do not need to apply; it is automatic. The cheque is sent to the address recorded on the V5C. Allow 4–6 weeks for receipt.
Do I get a refund for the current month?
No. Refunds cover only full calendar months remaining. If you cancel tax on 15 June, you do not receive a refund for June — only for July onwards. This is why it is worth cancelling early in a month rather than late in a month if you are storing a vehicle.
How long does a road tax refund take?
DVLA typically takes 4–6 weeks to issue a refund after the tax is cancelled. The refund arrives as a cheque posted to the registered keeper's address on the V5C. If you have moved and your V5C address is out of date, notify DVLA of your address change before cancelling to ensure the cheque reaches you.
I sold my car — will I automatically get a refund?
Yes, provided you have notified DVLA of the sale. When you send the V5C to DVLA (keeping the new keeper supplement for the buyer), DVLA registers the change and automatically cancels and refunds your tax. The refund is based on full months remaining from the date DVLA records the sale, not the actual date of handover.
Can I transfer my road tax to a new car?
No. Road tax is registered to a specific vehicle and cannot be transferred to another vehicle when you change cars. Your existing tax is cancelled when you sell your current car, and you need to tax the new vehicle separately. You will receive a refund for unused months on your old car.
What if I haven't received my refund after 6 weeks?
Contact DVLA directly. Make sure your V5C address was correct at the time of cancellation. If the cheque was sent to an old address, you may need to request a replacement. Keep your SORN or sale notification reference number handy when contacting DVLA.
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VED refunds are issued automatically by DVLA for full calendar months remaining only. MotR is not affiliated with DVLA, DVSA or GOV.UK. Verify through official GOV.UK sources. Last reviewed 13 June 2026.

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