Selling a vehicle
What to do with the V5C when selling
Checked on 7 September 2026.GOV.UK, Tell DVLA you have sold, transferred or bought a vehicle (as of 7 September 2026)
What to do with the V5C when selling
Use the DVLA online service while both sides have the details to hand. DVLA cancels the seller's tax and refunds complete unused months, under GOV.UK guidance checked in September 2026. The buyer starts a separate tax licence before driving.
What do I do with the V5C on the day I sell?
Tell DVLA when you no longer own the vehicle. Use the online service if you have the logbook. You cannot use it if you have already sent the V5C by post, or if you do not have a logbook. The service is available Monday to Friday 7am to 9pm, and Saturday and Sunday 7am to 8pm.
Give the buyer the green new keeper slip (V5C/2). Do not give them the whole logbook as if they were a motor trader unless they are one. Keep the confirmation that DVLA accepted the transfer. That confirmation is what you produce if a late licensing letter arrives later.
If you want to keep the registration number, take it off the vehicle before you tell DVLA you sold it.
- Check the name and address on the V5C are still yours. Update them first if they are not, or you may delay a refund.
- If you are keeping the private plate, take the number off before the keeper change.
- Notify DVLA online with the buyer's full name and address, not initials.
- Hand the buyer the green V5C/2 and keep your confirmation.
- Expect a refund of complete unused months, sent to the name and address on the logbook.
How do I sell to a motor trader instead?
GOV.UK's motor trade path uses the 11 digit reference from the latest V5C. Give the logbook to the buyer, including the green new keeper slip, tell DVLA you have sold the vehicle using the service, and destroy the yellow 'sell, transfer or part-exchange your vehicle to the motor trade' section (V5C/3) when you have finished. You do not send that yellow section if you have used the online service.
If you apply by post instead, get the motor trader to fill in the yellow section and send the perforated section to DVLA Swansea SA99 1BD.
A trader notifying DVLA does not remove your duty if you are the one who sold it without a logbook. Write to DVLA Swansea SA99 1BA with the sale details if you have no V5C.
What happens to the tax when I sell?
After you tell DVLA, your vehicle tax is cancelled. If you pay by Direct Debit, that Direct Debit is cancelled automatically. You get a refund cheque for any full months left. The refund is calculated from the date DVLA gets your information, and the cheque is sent to the name and address on the vehicle log book.
You will not get a refund for credit card fees, the 5% surcharge on some Direct Debit payments, or the 10% surcharge on a single 6 month payment. If the refund is for the first tax payment on the vehicle, the amount is based on whichever is lower of that first payment and the rate for the second tax payment onwards.
Contact DVLA if the refund cheque has not arrived after 8 weeks. If the cheque is in the wrong name, return it to Refund Section, DVLA, Swansea SA99 1AL, and tell them the right name. Contact them if a replacement cheque has not arrived after 4 weeks.
What if I have no V5C when I sell?
The online transfer service cannot be used. Write to DVLA Swansea SA99 1BA with your name and address, the vehicle registration number, the make and model, the exact date of sale, and the name and address of the new keeper or motor trader. A notification can be rejected if you omit any of that, which also affects any tax refund you are owed.
A genuine keeper who has lost the V5C can usually replace it before a planned sale. Doing that, then selling with a green slip, is cleaner for both sides than a letter after the fact.
Example
A private sale on a Saturday, taxed until next month
- Sale
- Saturday, private buyer, V5C in hand
- Tax
- Licensed until the 17th of next month
- Direct Debit
- No, paid in a 12 month lump
- Address on V5C
- Current
- Seller notifies DVLA online the same day and hands over the green slip.
- Buyer taxes with the 12 digit reference before driving away.
- DVLA cancels the seller's tax from the date it gets the notification.
- The seller receives a cheque for any complete unused months, sent to the V5C address. The part-used month is not refunded.
The car leaves with new tax in the buyer's name. The seller's leftover full months come back as a refund cheque, not as a credit to the buyer.
What goes wrong when selling?
The seller forgets to notify DVLA. Late licensing penalties then land on the person still showing as keeper.
The buyer's name is taken as 'J Smith' without an address. DVLA can reject the notification.
The seller hands over the whole V5C and then cannot prove what they did. On a private sale the buyer needs the green slip; you keep the confirmation.
The address on the V5C is three house-moves old, so the refund cheque never arrives. Contact DVLA after 8 weeks and update the name if the cheque is wrong.
Which selling myths should I ignore?
Myth: leaving the V5C in the glovebox transfers the car. Only a DVLA notification transfers the keeper.
Myth: you should wait until Monday because DVLA is closed. The online service runs at the weekend from 7am to 8pm.
Myth: the buyer can notify the sale for you on a private sale. GOV.UK's service is for the person who no longer owns the vehicle, or who has bought it, using the right path. Do your own notification.
What if a late licensing letter arrives after I sold?
DVLA writes to whoever the record still shows as keeper. If you notified the sale, produce the confirmation and the date. If you did not, notify now, in writing if you have no V5C, and keep a copy. A late licensing penalty is a separate DVLA process from the keeper change; sorting the record is the first step.
The refund cheque is sent to the name and address on the logbook. If you have moved, that is why it never arrived. Contact DVLA after 8 weeks, and return a wrong-name cheque to Refund Section, DVLA, Swansea SA99 1AL.
A company that sold a van on a Saturday and waited until accounts opened on Monday can still notify over the weekend: the online service runs 7am to 8pm on Saturday and Sunday. Waiting is how the buyer drives around still showing you as keeper.
Common questions
- Who sends the V5C to DVLA?
- On a private sale the seller completes the keeper change online or sends the required V5C section. The buyer keeps the green new keeper slip. On a motor trade sale the yellow V5C/3 section is used, or the trader is given the logbook and you tell DVLA online, then destroy the yellow section if you used the online service.
- What happens to tax after a sale?
- The seller's tax is cancelled and complete unused months are refunded by cheque to the name and address on the logbook. Direct Debit is cancelled automatically. The buyer must arrange a new licence before driving. Credit card fees and the published Direct Debit or 6 month surcharges are not refunded.
- Can I report a sale without the V5C?
- Yes, but not through the online service. GOV.UK says the seller must write to DVLA Swansea SA99 1BA with their name and address, the registration, make and model, the exact date of sale, and the new keeper's name and address. Missing any of those can reject the notification and the refund.
- When should I take a private plate off?
- Before you tell DVLA you sold the vehicle, if you want to keep the number. GOV.UK says you must do that first. Once the keeper change is through, that number has gone with the vehicle.
- How long does the tax refund take?
- GOV.UK does not publish a standard posting time. Contact DVLA if the refund cheque has not arrived after 8 weeks. If the cheque is in the wrong name, return it to Refund Section, DVLA, Swansea SA99 1AL. A replacement should be chased after 4 weeks.
- Do I need to update my address before selling?
- You must tell DVLA when you move, and you can be fined up to £1,000 if you do not. A current address is also where the refund cheque is sent. You can still notify a sale if you have the V5C; do not let a stale address be the reason a refund vanishes.
- What if I sell to a dismantler or the car is written off?
- Telling DVLA a vehicle has been written off is treated like selling it to the insurer. Use the insurer's name and postcode in the trader details, the registration, and the 11 digit reference from the yellow section. You can be fined £1,000 if you do not tell DVLA. Take a private plate off first.
- Can the buyer drive away on my tax until Monday?
- No. GOV.UK says the buyer must tax the vehicle before driving it, or declare it off the road. Your tax is cancelled when DVLA is told. Hand over the green slip and wait while they tax, or arrange recovery.
Sources
- GOV.UK, Tell DVLA you have sold, transferred or bought a vehicle (as of 7 September 2026)
- GOV.UK, Tax your vehicle (as of 7 September 2026)
- GOV.UK, Cancel your vehicle tax and get a refund (as of 7 September 2026)
- GOV.UK, Change your address on your vehicle log book (V5C) (as of 7 September 2026)
- GOV.UK, If you cannot get a log book (V5C) online (as of 7 September 2026)