How to Cancel Car Tax (Road Tax) in the UK

Updated 22 October 2026.

If you’re the registered keeper of a vehicle in the UK, you pay car tax, also called road tax or Vehicle Excise Duty (VED). When you sell, scrap or stop using the car, you’ll want that tax cancelled and any money owed back to you. The good news: you don’t cancel car tax separately. It’s cancelled automatically when you tell the DVLA you no longer have the vehicle, or that it’s off the road, and the DVLA then refunds any full months left.

This guide explains when your car tax is cancelled, exactly what to do in each situation, how refunds work, and the mistakes that cost drivers money. To check whether any UK vehicle is taxed, and when its tax is due, run our free car tax check.

How do I cancel my car tax?

You cancel car tax by telling the DVLA that you no longer have the vehicle, or that it’s off the road. As GOV.UK puts it, “there’s no other way to cancel your vehicle tax”. There is no separate cancellation form: once the DVLA has your information, it cancels the tax, stops any Direct Debit and sends any refund due.

When is car tax cancelled?

Your car tax is cancelled when you tell the DVLA that:

• you’ve sold the vehicle or transferred it to someone else
• you’ve taken it off the road with a SORN (Statutory Off Road Notification)
• it has been scrapped, or written off by your insurer
• it has been stolen
• it has been exported, or it has become exempt from vehicle tax

What to do in each situation

You’ve sold or transferred the car

Tell the DVLA online using the sold or bought a vehicle service on GOV.UK. You’ll need the 11-digit document reference number from the V5C logbook. You can also tell the DVLA by post using the logbook. Your car tax is then cancelled automatically. It doesn’t pass to the new keeper, who must tax the car before driving it.

If you sell to a dealer or a car buying service, check whether they will tell the DVLA or whether you need to. Either way, make sure it’s done, because you stay responsible for the car until the DVLA knows.

You’re keeping the car off the road

Make a SORN on GOV.UK. Once the car is declared off the road, its tax is cancelled and you don’t need to tax or insure it, but it must be kept off public roads: on a drive, in a garage or on private land. You can only drive it again once it’s taxed, apart from to a pre-booked MOT.

The car has been scrapped or written off

Scrap a car at an authorised treatment facility, which will give you a certificate of destruction, then tell the DVLA. If your insurer has written the car off, follow its instructions on the logbook and tell the DVLA. GOV.UK explains both in scrapped and written-off vehicles.

The car has been stolen

Report the theft to the police and your insurer. For a stolen vehicle, the refund of car tax is applied for separately: GOV.UK’s vehicle tax refund page explains how.

You’re taking the car abroad permanently

Tell the DVLA you’ve exported it, using the logbook. GOV.UK covers the details in taking vehicles out of the UK.

Will I get a car tax refund?

Yes, for any full months left on your car tax, counted from the date the DVLA receives your information. Part months aren’t refunded: tell the DVLA on 10 April and you’ll be refunded from May onwards.

• How it’s paid: automatically, by cheque, to the name and address on the V5C logbook.
• Direct Debit: cancelled automatically once the DVLA cancels the tax. You don’t need to contact your bank.
• What isn’t refunded: credit card fees, the 5% surcharge on some Direct Debit payments, and the 10% surcharge on a single six-month payment.
• If it doesn’t arrive: contact the DVLA if you haven’t received your cheque after eight weeks.

Common mistakes that cost drivers money

• Looking for a separate “cancel tax” form. There isn’t one. Telling the DVLA about the sale, SORN, scrapping or export is what cancels the tax.
• An out-of-date address on the logbook. Refund cheques go to the address on the V5C, so keep it current.
• Assuming someone else will tell the DVLA. Until the DVLA knows, you’re still the keeper and responsible for the car.
• Driving or parking on the road after a SORN. A SORN car must stay off public roads until it’s taxed again.

Frequently asked questions

Do I need to cancel my car tax when I sell my car?

Not separately. Telling the DVLA you’ve sold the car cancels its tax automatically, and any full months left are refunded to you. The buyer has to tax the car before driving it.

Can I cancel car tax online?

Yes. Tell the DVLA online that you’ve sold or transferred the car or made a SORN, and the tax is cancelled. You’ll need the 11-digit reference number from the V5C logbook.

Is cancelling road tax different from cancelling car tax?

No. Car tax, road tax and Vehicle Excise Duty (VED) are the same thing, and they’re cancelled the same way: by telling the DVLA you no longer have the vehicle or it’s off the road.

Can I transfer my car tax to the new owner, or to my next car?

No. Car tax can’t be transferred. The new keeper must tax the car before driving it, and you’ll be refunded for any full months left. If you buy another car, you’ll need to tax it yourself.

What happens if I forget to tell the DVLA?

Your tax isn’t cancelled and you won’t get a refund. You also stay the registered keeper, so you could receive letters, fines or charges linked to the car. Tell the DVLA as soon as you can: refunds are counted from the date it receives your information.

How do I contact the DVLA about car tax?

Most things can be done online through GOV.UK. For contact details, see the DVLA’s vehicle tax and SORN contact page.

How can I check whether a car is taxed?

Run our free car tax check with the registration number. It shows whether the vehicle is taxed or SORN, when its tax is due and what it costs to tax. Our free car check shows the same, along with the car’s MOT status and details.

If you’re buying a car, run a full car history check as well: it shows whether the car has been stolen, written off or still has finance owing. See Silver and Gold check prices.

Sources and related guides

• GOV.UK: get a refund on vehicle tax
• GOV.UK: tell DVLA you’ve sold or bought a vehicle
• Electric car tax: what EVs pay now and from 2028
• How to tax a car without an MOT
• MOT due date: how to check when your MOT runs out

Check whether a vehicle is taxed, and when its tax is due, with our free car tax check.