When you sell your car, What happens to your road tax?


There is still some confusion around the tax when buying and selling used cars. Figures show that the number of drivers being clamped by the DVLA has increased by around 3,000 a month.

Under the new car tax system, any remaining road tax will not transfer to the new owner along with the vehicle. Instead, the seller can reclaim road tax on any tax remaining on the vehicle, while the buyer must re-tax the car in their name.

The refund of tax on a sold car will be sent automatically when the DVLA receives notification that the car has been sold, scrapped, exported or taken off the road with a Statutory Off Road Notification (SORN).