When you can claim a refund on vehicle tax
You can claim a refund on vehicle tax (also called road tax or vehicle excise duty) if you have paid for a full year but no longer need the vehicle before that year ends. The refund covers the unused months only — you do not get back the time you already drove on the road.
The most common reason for a refund is selling or scrapping the vehicle. You can also claim if the vehicle is off the road and not being used, if it has been stolen, or if it has failed its MOT test and you choose not to repair it. Some people claim when they move abroad or when a vehicle is declared a total loss by an insurer.
The refund is calculated by the DVLA (Driver and Vehicle Licensing Agency) based on the number of complete months remaining on your tax disc. If you paid £180 for a year and you claim with five months left, you receive a refund for those five months, not a pro-rata daily amount.
Key Takeaways
- You must tell the DVLA you are no longer using the vehicle before you can receive a refund — straightforward not driving it does not trigger one automatically.
- The refund covers only complete months remaining on your tax disc, calculated from the date the DVLA receives your claim.
- If you sell the vehicle, the new owner can transfer the remaining tax to their name instead of you claiming a refund.
- You submit your claim by returning your vehicle registration document (V5C) and a completed form V14 to the DVLA.
- Refunds usually arrive within four weeks of the DVLA receiving your claim, though processing times can vary.
How to notify the DVLA and request your refund
You must tell the DVLA that you are no longer using the vehicle. The method depends on whether you still have the vehicle registration document (the V5C certificate).
If you have the V5C, complete form V14 (process for a refund of vehicle tax) and send it to the DVLA along with the V5C itself. The form is available on the GOV.UK website as a PDF you can print and fill by hand, or you can request a copy by post. Include a covering letter explaining why you are no longer using the vehicle — for example, "Vehicle sold to John Smith on 15 March 2024" or "Vehicle scrapped at ABC Scrapyard on 10 April 2024".
If you have lost the V5C or it was never issued to you, you can still claim. Write a letter to the DVLA explaining the situation and why you are no longer using the vehicle. Include your vehicle registration number, the date you stopped using it, and your contact details. The DVLA will investigate and may ask for additional proof, such as a receipt from a scrapyard or a bill of sale from the buyer.
Send everything to the address shown on the GOV.UK vehicle tax refund page. Do not send documents to your local DVLA office — they must go to the central processing address. Keep a copy of everything you send and note the date you posted it.
What happens after you submit your claim
The DVLA calculates your refund from the date they receive your claim, not from the date you stopped using the vehicle. This is important: if you stopped driving on 1 March but did not submit your claim until 20 April, the refund covers only the months from 20 April onwards. You lose the refund for March and April.
The DVLA will send you a letter confirming receipt of your claim and telling you the refund amount. This letter usually arrives within two weeks. If you included a covering letter with specific details (such as the date you sold the vehicle), the DVLA uses that date to calculate the refund period, not the date they received the form.
Once your claim is processed and approved, the refund is sent to the address on your V5C or the address you provided in your letter. Refunds are paid by cheque, not by bank transfer. The cheque usually arrives within four weeks of the DVLA sending their confirmation letter, though this can take longer during busy periods.
Selling the vehicle versus claiming a refund
If you are selling the vehicle to another person, you have two options: claim a refund yourself, or let the new owner transfer the remaining tax to their name.
If the new owner transfers the tax, they become responsible for the vehicle tax from the date of transfer onwards, and you receive no refund. This is simpler if the buyer is willing to do it, because neither of you has to contact the DVLA separately. The new owner completes form V5C/2 (process for a transfer of vehicle registration) and sends it with the V5C to the DVLA.
If you claim the refund instead, the new owner will need to buy a new tax disc for the vehicle before they can drive it. This costs them money, so they may prefer to transfer the existing tax. Discuss this with the buyer before you sell — it affects both the price and the paperwork involved.
Scrapping or destroying the vehicle
If you are scrapping the vehicle, the scrapyard will usually handle the notification to the DVLA for you. Ask them before you hand over the vehicle — some scrapyards include this in their service, and others do not.
If the scrapyard does not notify the DVLA, you must do it yourself using form V14 and the V5C. Include a letter from the scrapyard confirming the date they received the vehicle and its registration number, or a receipt showing the vehicle was scrapped. The DVLA uses the date on the scrapyard's letter to calculate your refund period.
If you cannot get a letter from the scrapyard, write to the DVLA yourself explaining when and where the vehicle was scrapped. Provide as much detail as you can — the scrapyard name, address, and the date you delivered the vehicle. The DVLA will investigate and may contact the scrapyard to confirm.
If your vehicle was stolen or declared a total loss
If your vehicle was stolen, report it to the police first and obtain a crime reference number. Send form V14 to the DVLA along with a copy of the police report or crime reference number. The DVLA calculates the refund from the date you reported the theft to the police, not from the date you discovered it was missing.
If your vehicle was declared a total loss by your insurance company, ask the insurer for a letter confirming the date of the loss and the vehicle registration number. Send this letter with form V14 to the DVLA. The refund is calculated from the date shown on the insurer's letter.
Timelines and what to expect
| Stage | Timeframe | What you receive |
|---|---|---|
| DVLA receives your claim | Day 1 | Refund period begins from this date |
| DVLA sends confirmation letter | 2 to 3 weeks | Letter stating refund amount and calculation |
| Refund cheque posted | 4 weeks after confirmation | Cheque by post to your address |
| Cheque arrives | 5 to 7 working days | Cheque ready to bank |
These timelines are typical but not may provide. During peak periods (such as March and September when many people renew or change their vehicles), the DVLA may take longer. If you have not received your confirmation letter within four weeks, contact the DVLA using the phone number on the GOV.UK website and provide your vehicle registration number.
Once you receive the cheque, you can pay it into your bank account at any branch or by post. Some banks allow you to photograph the cheque and deposit it through their app. The cheque is valid for six months from the date it is issued.
Frequently Asked Questions
Can I claim a refund if I have already sold the vehicle?
Yes, but only if you still have the V5C or can prove the sale. The refund is calculated from the date the DVLA receives your claim, not from the date you sold the vehicle. If you sold it three months ago and are only now claiming, you lose the refund for those three months. Submit your claim as soon as you know you will not be using the vehicle.
What if the DVLA loses my form or cheque?
Keep a copy of everything you send and note the date you posted it. If you do not receive a confirmation letter within four weeks, contact the DVLA and provide your vehicle registration number. They can check whether your claim was received and resend a confirmation letter or cheque if needed.
Do I get a refund if the vehicle fails its MOT?
Only if you choose not to repair it and notify the DVLA that you are no longer using it. straightforward failing the MOT does not trigger a refund. You must submit form V14 and explain that the vehicle is off the road due to the failed test.
Can I claim a refund for a vehicle I own but do not drive?
Yes, but you must notify the DVLA first. If a vehicle is parked and unused, you can claim a refund by submitting form V14 and explaining that it is off the road. The refund is calculated from the date the DVLA receives your claim, so submit it as soon as you decide not to use the vehicle.
What if I want to use the vehicle again after claiming a refund?
You will need to buy a new tax disc before you can drive it. Once you have claimed a refund, the existing tax is cancelled. You cannot reverse a refund claim and get the tax back — you must purchase a new one through the DVLA or Post Office.