Key Takeaway:
You can cancel (and reclaim) any remaining full months of Vehicle Excise Duty (VED)—commonly known as “tax” or “road tax”—by notifying the Driver and Vehicle Licensing Agency (DVLA) that your vehicle is no longer in use on UK roads, has been sold, exported, written off, scrapped, stolen, or registered as tax-exempt.
1. Understanding Car Tax (VED)
Vehicle Excise Duty is a legal requirement for most vehicles driven or parked on UK public roads. It is levied annually (or in installments) based on CO₂ emissions, fuel type, and registration date. Failure to pay incurs fines, penalty points, or vehicle seizure.
2. Valid Reasons to Cancel Your Car Tax
You can only cancel car tax for one of these seven reasons:
- Sold or transferred ownership
- Taken off the road (Statutory Off Road Notification, SORN)
- Written off by an insurer
- Scrapped at an authorised treatment facility
- Stolen
- Exported out of the UK
- Registered as tax-exempt (e.g., historic or disabled vehicles)
No other circumstances qualify for cancellation or refund.
3. Methods to Cancel Your Car Tax
3.1 Online
The quickest route is the DVLA online service:
- Sold/transferred: use the “Tell DVLA you’ve sold, transferred or bought a vehicle” service.
- SORN: use the “Register your vehicle as off the road” (SORN) service.
- Other reasons: access the “Cancel your vehicle tax and get a refund” page on GOV.UK.
You will need:
- Vehicle registration number
- 11-digit V5C reference or 16-digit V11 tax-reminder reference
3.2 By Phone
Call DVLA Vehicle Customer Services at 0300 123 4321 (24-hour service) for SORN or general tax cancellation; or 0300 790 6802 for car tax refunds (Monday–Friday 8 am–7 pm; Saturday 8 am–2 pm).
3.3 By Post
Complete the relevant form(s):
- Sold/transferred: send part V5C to DVLA Swansea SA99 1BA with sale details.
- SORN: V890 form (and V62 if no logbook) to DVLA Swansea SA99 1AR.
Include any required evidence (e.g., insurer write-off notice).
4. Documents You’ll Need
- V5C registration certificate (logbook) or V11 tax-reminder
- V890 (“SORN”) form for off-road declarations
- V62 application form if you’ve lost your logbook (cost £25)
If you’re selling and have already sent your V5C, provide name, address, reg number, make/model, sale date, and new keeper details in a letter to DVLA.
5. How Refunds Work
- Refund amount: Unused full months remaining on your tax.
- Calculation date: From the date DVLA receives your cancellation, not the date you send it.
- Payment method: Cheque sent to the name and address on the V5C.
- Excluded charges: Credit-card fees; 5% DD surcharge; 10% six-month single-payment surcharge.
If you paid by Direct Debit, future instalments stop automatically and you’ll receive a cheque for any overpayment. Allow up to 8 weeks for your cheque; contact DVLA if it doesn’t arrive.
6. Common Pitfalls & Tips
- Don’t wait: Apply as soon as you qualify to maximise refund.
- Keep evidence: Retain copies of online reference numbers or proof of posting.
- Lost logbook? Order a replacement immediately to avoid delays.
- SORN parking rules: A declared-off vehicle must be kept fully off public roads; non-compliance incurs fines up to £2,500.
- New owner obligations: They must tax or SORN before driving; tax does not transfer automatically.
7. After Cancellation
- If you buy another vehicle, tax it separately—it will not inherit your previous tax.
- To resume driving a SORN vehicle, ensure it has a valid MOT, insurance, and tax before returning to public roads.
Staying compliant and proactive ensures you only pay for the time you actually use your vehicle—and get every penny back when you don’t.
