Millions of motorists missing out on vehicle tax rebate

Vehicle tax reminder with car keys and pounds

Does the government owe you money for selling your car?

Motoring experts at and are urging Brits to follow through on claiming back the vehicle tax on their old car when they upgrade to a new motor.

“Any driver who has recently sold their car after paying road tax will be eligible for a refund from the government,” said Tim Alcock from

“If you’ve paid your road tax for a whole year yet sell the car after a couple of months – you will be eligible to receive most of the tax back into your bank account.”

Hundreds of pounds owed for car tax rebates

Did you know annual vehicle tax payments range from nothing for fully electric vehicles to as much as £2,605 for sports cars?

In the UK, the most popular selling car of 2022 was the Ford Fiesta, with the 2022 model costing £155 a year in vehicle tax.

With the price of used cars rising significantly in recent years, due to the global shortage of new cars, claiming back vehicle tax could help cover the cost of changing your vehicle.

But despite this, many Brits fail to claim their tax refund from the government after selling their vehicles, potentially missing out on hundreds or even thousands of pounds.

The reminder to claim back vehicle tax could be a major boost to families suffering from the ongoing cost-of-living crisis.

Steps to claim money back for your car tax

After informing the DVLA that your car has been sold, you need to apply for a tax rebate as soon as possible to get the maximum amount of cash back, as only a full month’s worth of tax can be claimed.

Alcock advises: “Before selling a vehicle, the logbook (V5C) should also be updated to reflect any change of name, address, or modifications made to the car. Any details which are incorrect may prevent motorists from getting a tax rebate.

“Also ensure to tell the DVLA that you’ve sold your car, and provide the full name and address of the buyer. Failing to do so may also stop you from getting any money back.”

In other cost-saving news, fuel prices have started to come down, but are you always getting the cheapest option? Find out with the RAC’s new fuel finder app.

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