If you’re the keeper of a car in the UK, you probably know that road tax (also called Vehicle Excise Duty) is a legal requirement for vehicles. But what happens when you sell your car, scrap it, or take it off the road? Many drivers overpay simply because they don’t know how to cancel road tax correctly.
This guide explains when and how to cancel your road tax, the steps involved, how refunds work, and what mistakes to avoid.
Why Cancel Road Tax?
You should cancel your road tax when:
- You sell your car to a private buyer or dealer
- You scrap your vehicle
- Your car is written off by an insurance company
- You register a Statutory Off Road Notification (SORN) because you’re not driving it
- You export the vehicle
- Your vehicle has been stolen
Failing to cancel means you keep paying for a service you don’t use – and the DVLA does not automatically refund you unless you take action.
How to Cancel Road Tax
Cancelling road tax is straightforward through the DVLA, but you must follow the correct process.
1. Inform the DVLA
The quickest way is to use the official DVLA website:
- Visit gov.uk/cancel-vehicle-tax
- Enter your vehicle details and V5C logbook reference
- Confirm the reason for cancellation (sold, scrapped, SORN, etc.)
You can also do this by phone or post, but online is faster and gives you instant confirmation.
2. Apply for a SORN (if applicable)
If your car is off the road (e.g., kept on private property and not driven), you must declare it off-road using a SORN.
- Apply online at gov.uk/make-a-sorn
- This stops tax and insurance requirements until the car is back on the road
Will I Get a Road Tax Refund?
Yes, but only for full unused months. For example:
- If you cancel on 10th April, you’ll be refunded for May onwards, not the partial April month.
- Refunds are sent by cheque to the name and address on your V5C logbook.
Direct debits stop automatically once you cancel, so you don’t need to contact your bank.
Common Mistakes to Avoid
- Not updating your V5C details – refunds go to the address on record.
- Assuming dealers cancel for you – always confirm with the DVLA yourself.
- Driving without tax – even one day without tax on the road can lead to fines.
FAQs
Can I transfer my road tax to a new car?
No. Road tax is non-transferable. You must tax the new vehicle separately.
What happens if I forget to cancel?
You’ll keep paying and won’t get any automatic refund.
Can I cancel by phone?
Yes, call the DVLA on 0300 790 6802 (Mon-Fri).
How can I check the tax status of my vehicle?
Run a free Total Car Check to confirm tax status and obtain other useful insights about your car.
Final Thoughts
Cancelling road tax is quick and easy, but it’s your responsibility. Whether you’re selling, scrapping, or storing your car, acting fast ensures you don’t waste money.
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