When you can claim a car tax refund
You can claim a refund on your vehicle tax (also called road tax or vehicle excise duty) if you've paid for a full year or longer period but no longer need the tax disc. The refund covers the unused months only — you don't get back the time you've already driven on the road.
The most common reason for a refund is selling or scrapping your car before the tax period ends. You can also claim if you've declared the vehicle off the road (SORN — Statutory Off Road Notification) and want to reclaim the tax you paid. If your car is stolen, you may be able to claim back the unused portion once you've reported it to the police and the DVLA.
You cannot claim a refund if your tax has already expired, or if you're straightforward choosing not to renew it. The refund only applies to tax you've already paid in advance.
Key Takeaways
- You can claim a refund for unused months of vehicle tax when you sell, scrap, or declare your car off the road.
- The DVLA processes refunds directly — you don't go through your local council or the Post Office.
- You'll need your V5C registration certificate (or a signed letter from the new owner if you've sold the car) and proof of the sale or scrapping date.
- Refunds typically take four to six weeks from the date the DVLA receives your claim, though this can vary.
- If you've sold the car, the new owner must not tax it in their name until after your refund has been processed, or your claim will be rejected.
How to claim if you've sold the car
When you sell your vehicle, you need to notify the DVLA that you're no longer the keeper. At the same time, you can claim back the tax for any unused months. The process starts with the V5C registration certificate — the document that proves you own the car.
Fill in section 5 of the V5C (the part about selling the vehicle) and send it to the DVLA along with a letter stating the date you sold the car and asking for a refund of the unused tax. Include a copy of the receipt or bill of sale showing the date of the sale. The new owner will receive their own V5C section to register the car in their name, but they should not tax it until after your refund has been processed — if they do, your claim will be rejected.
Send everything to DVLA, Swansea, SA99 1AR. The DVLA will process your refund and send it to the bank account or address you provide. If you don't have the V5C (for example, if it's been lost), you can write to the DVLA explaining the situation and they will guide you on what to do instead.
How to claim if you're scrapping the car
When you scrap a vehicle, the scrapyard or dismantler will handle the notification to the DVLA on your behalf. However, you still need to claim the tax refund separately — the scrapyard does not do this automatically.
Contact the DVLA directly and provide the date the car was scrapped, your vehicle registration number, and the name of the scrapyard. You can do this by phone (0300 790 6802) or by post. Ask for a refund form or send a letter with these details. The DVLA will need proof that the car was actually scrapped — the scrapyard should give you a certificate of destruction, which you can send along with your claim.
Keep a record of when you contacted the DVLA and what information you provided. If the refund doesn't arrive within eight weeks, contact them again with your reference number.
How to claim if the car is declared off the road
If you've made a SORN (Statutory Off Road Notification) declaration and want to reclaim the tax you paid, you can claim a refund for the months the car will not be used. This is useful if you're storing the vehicle for a long period or if you've declared it off the road but later decide you don't want to keep paying tax on it.
Write to the DVLA with your vehicle registration number, the date you made the SORN declaration, and the date from which you want the refund to explore. The DVLA will calculate the refund based on the unused months from that date onwards. You don't need to cancel the SORN — the refund can be processed while the vehicle remains off the road.
What documents you need and where to send them
| Situation | Documents needed | Where to send |
|---|---|---|
| Sold the car | V5C section 5 (completed), copy of receipt or bill of sale with date, letter requesting refund | DVLA, Swansea, SA99 1AR |
| Scrapped the car | Certificate of destruction from scrapyard, letter with registration number and scrap date | DVLA by phone (0300 790 6802) or post to Swansea address |
| Declared off the road (SORN) | Letter with registration number, SORN date, and date refund should explore from | DVLA, Swansea, SA99 1AR |
| Car stolen | Police crime reference number, letter explaining the theft, proof of tax payment | DVLA, Swansea, SA99 1AR |
How long refunds take and how you'll receive the money
The DVLA typically processes refunds within four to six weeks of receiving your claim. This timing starts from the date they receive your letter or form in the post, not from the date you send it. If you're posting your claim, allow extra time for the post to reach Swansea.
The refund will be sent to you by cheque or direct transfer to a bank account, depending on what you request. If you provide bank details, the transfer is usually faster than waiting for a cheque to arrive. Make sure the address or bank account details you provide are correct — if the cheque is returned or the transfer fails, the DVLA may hold the money and you'll need to contact them again.
If eight weeks have passed and you haven't received your refund, contact the DVLA with your reference number (which you should have been given when you submitted your claim). They can check the status and reissue the payment if needed.
What happens if the new owner taxes the car before your refund is processed
If you've sold the car and the new owner registers and taxes it in their name before the DVLA has processed your refund, your claim will be rejected. This is because the system sees the vehicle as currently taxed, and the DVLA cannot issue a refund on a car that is actively registered to someone else.
To avoid this, tell the new owner not to tax the car until after you've received your refund. You can include this instruction when you hand over the V5C section. If the new owner has already taxed the car and your refund was rejected, contact the DVLA to explain the situation. They may be able to process the refund retroactively, but this requires a written explanation and can take longer.
Frequently Asked Questions
Can I claim a refund if I've only owned the car for a few weeks?
Yes. The refund is based on the unused months from the date you no longer need the tax, not on how long you owned the car. If you bought a car with a full year of tax already paid and sold it a month later, you can claim back the remaining 11 months.
What if I've lost the V5C registration certificate?
Contact the DVLA and explain that the certificate is lost. They will send you a replacement or guide you through an alternative process for claiming the refund. You may need to provide additional proof of ownership or the sale, such as a receipt or insurance documents.
Do I need to claim the refund, or does the DVLA do it automatically?
You must claim it — the DVLA does not issue refunds automatically. Even when you notify them that you've sold or scrapped the car, you still need to specifically ask for a refund of the unused tax in the same letter or form.
What if the car was stolen and I've reported it to the police?
You can claim a refund for the unused tax once you've reported the theft to the police and the DVLA. Send the DVLA your police crime reference number, a letter explaining the theft, and proof that you paid the tax. They will process the refund once they've verified the report.
Can I claim a refund if the car fails its MOT and I decide to scrap it?
Yes. The reason you're scrapping the car doesn't matter — as long as you have proof from the scrapyard (the certificate of destruction) showing when it was scrapped, you can claim a refund for the unused months of tax.