How to cancel car tax

Looking to get a refund on your car tax? This guide will tell you how…

If you own a car, you’ll need to pay car tax. Electric cars have been included since April 2025, with the only exceptions being cars over 40 years old, which are classed as exempt.

Officially called Vehicle Excise Duty (VED), car tax is sometimes called “road tax,” though the money doesn’t directly fund roads. Instead, rates are designed to encourage low-emission vehicles.

Selling or scrapping your car? Don’t worry – the car tax you’ve already paid isn’t gone. Cancelling it is straightforward, and you could get a refund for any full months left on your payment. All you need to do is notify the DVLA.

In this guide, we’ll walk you through exactly how to cancel your car tax, when you might be eligible for a refund, and the steps to get your money back – quickly and easily.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

When should I cancel my car tax?

You should cancel your car tax whenever your vehicle’s status changes in a way that makes it ineligible for taxation. The DVLA requires you to give a valid reason, why can be one of the following:

• You’ve sold or transferred the car to someone else.
• You’ve declared it off the road (SORN).
• The car has been written off by your insurance company.
• You’ve had it scrapped at a vehicle scrapyard.
• The car has been stolen.
• It has been exported out of the UK.
• It’s now registered as a tax-exempt vehicle.

These are the only acceptable reasons for cancelling your car tax. Driving without valid tax is risky: the DVLA can fine you £80, reduced to £40 if paid within 28-33 days. If caught by the police, you could face a fixed penalty notice of up to £1,000 – and your car may even be seized.

How do I cancel my car tax

The easiest way to cancel your car tax is through the DVLA online service. Rather than being a separate “cancellation” process, refunds and cancellations are part of actions like selling your car, scrapping it, or declaring it SORN. So let’s say you’re telling the DVLA you’ve sold a car, any remaining tax is automatically refunded.

If you’d prefer to speak to someone directly, the DVLA website also offers a web chat service and phone support for vehicle tax queries. Make sure you have your V5C logbook or V11 tax reminder ready whether you’re cancelling online, by webchat, or over the phone.

If you need to contact the DVLA by post, send your enquiry to:

DVLA
Swansea
SA99 1AR

Cancelling car tax: step-by-step

1. Tell the DVLA why you’re cancelling

Use the online service and have your V5C logbook or V11 reminder ready – they contain the code the DVLA needs. Then enter the reason for cancelling your car tax, such as selling, scrapping, exporting, or declaring SORN.

2. Wait for the DVLA to process your cancellation

Your request is processed from the day it’s received. Only full months of remaining tax are refunded, so partial months aren’t included.

3. Receive your refund and stop payments

How much you get depends on how you paid for the tax, which we will break down next.

How much will my car tax refund be?

The refund depends on how many full months of tax are left when the DVLA processes your cancellation. Partial months are not refunded.

• One-off or annual payments: You’ll get a refund for any remaining full months.
• Direct debit payments: Future payments are automatically cancelled; monthly payers usually don’t receive a refund, since only full months are refunded.

Refunds are calculated from the date the DVLA receives your cancellation request, not the date you submit it.

How will my car tax refund be paid?

Most car tax refunds are now issued by bank transfer, but in some cases, the DVLA may still send a cheque to the address where the car is registered.

If a cheque arrives with the wrong name, return it with a note showing the correct name to:

Refund Section
DVLA
Swansea
SA99 1AR

If you don’t receive your refund within four weeks, contact the DVLA to follow up.

What if I don’t receive the car tax refund I’m owed?

If you haven’t received your refund within eight weeks of your cancellation being processed, you can contact the DVLA.

Contact by web form

Use this page: contact.dvla.gov.uk/vehicle/capture-transaction-type

This isn’t a traditional email address, but the form ensures your query reaches the right DVLA team.

Contact by phone

Call 0300 790 6802 for vehicle tax enquiries.

Contact by post

Write to:

Vehicle Customer Services
DVLA
Swansea
SA99 1AR

Cancelling car tax FAQs

Will my car tax automatically cancel when I sell my car?

Yes, your car tax is cancelled automatically once you tell the DVLA that you’ve sold the car. Refunds won’t be issued if the DVLA doesn’t know the car now belongs to someone else.

How do I cancel my Direct Debit for car tax?

If the DVLA knows your car has been sold, they will automatically cancel any future direct debit payments. Monthly payers usually won’t receive refunds for partial months, but you will get a refund for any remaining full months of tax already paid.

How to cancel car tax without a V5C

Your V5C logbook is the main proof that you are the registered keeper and contains the code needed for a refund. If you don’t have it, you can use the code on your V11 car tax reminder.

If you’ve misplaced both, you must request a replacement V5C before selling your car or applying for a refund. This costs £25.

How long does a car tax refund take?

The DVLA says that refunds usually arrive within six weeks of your cancellation being processed, though many people receive them sooner. Refunds are typically made by bank transfer or cheque, depending on how you originally paid.

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Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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