Road Tax Refunds: Who is Eligible and How Do They Work?

If you have already paid your vehicle excise duty (VED) on a car you will no longer be using, it may be possible to claim a road tax refund. Most drivers pay their road tax annually, but it is not uncommon for a car to be sold or taken off the road before the duty’s expiry date.

In years gone by, it was possible to sell a partially taxed car and pass the remaining tax over to the new buyer. This was often a hugely motivating factor for the purchasing party, for whom a taxed vehicle was a more appealing prospect than a car with no tax.

Today, as the traditional tax no longer exists, this is not possible. When your car is scrapped or sold, you can simply claim a refund on the amount of tax you have already paid.

How Do I Get a DVLA Road Tax Refund?

There are several scenarios within which it may be possible to get a partial refund on your road tax. If any of the following apply, you may be due a refund from the DVLA:

1. Transferring Ownership or Selling.  This is the most common pathway to a road tax refund and also the easiest to conduct. All you need to do is inform the DVLA that ownership of your car has been transferred, and they will send you a cheque to your registered address.
2. SORN Declaration.  Applying for a Statutory Off Road Notification indicates that your car has been taken off public roads permanently.  Again, your road tax refund will be processed and issued automatically, up for notifying the DVLA of your car’s retirement.
3. Modifying a Car.  There are some types of car modifications that can alter the tax liability of a vehicle, after being performed. This can be a slightly more complex type of refund to organise, but there is an application form on Gov.uk outlining the rules and requirements.
4. Car Scrapping and Recycling. When scrapping a vehicle with an approved treatment facility, you will be provided with a formal certificate of destruction. Submit this evidence to the DVLA with the rest of the required paperwork and your refund will be processed.
5. Taking a Car Out of the UK.  It could also simply be that you are leaving the country and do not intend to drive your car on UK roads anymore. In which case, you will need to contact the DVLA to discuss whether or not you are eligible for a partial refund.

The DVLA can be contacted using the following information:

Phone – 0300 790 6802

Mon to Fri (8 am – 7 pm)

Saturday (8 am – 2 pm) 

https://www.gov.uk/contact-the-dvla

Can I Get a Refund on My Unused Car Insurance?

Policies vary from one provider to the next, but most insurers will offer their customers refunds on unused insurance. There will usually be the option of transferring the outstanding insurance to a new car, or claiming a refund to the original payment method used.

Contact your insurer for clarification ahead of time, if you believe you are eligible for a refund on your insurance.