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Wednesday, 3 October 2023

Changes to six-month tax discs, refunds and used imported vehicles

Different first year rates of vehicle tax have been introduced for cars registered from 1 April 2010. At the same time changes have been made to the rules about six-month tax discs and refunds. There are also different rates of vehicle tax for some used imported vehicles.

Six-month tax discs

Vehicles being registered for the first time in bands A to D will not be able to get a six-month tax disc at first registration.

This is because six-month tax discs are only available where the vehicle tax rate is more than £50. Vehicle tax in bands A to D will be free on first registration from 1 April 2010.

Also, from 1 April 2023 six-month tax discs will not be available for vehicles being registered in bands H to M. This is because the first year rate for these vehicles is higher than the normal standard rate. If you have a vehicle in these bands you will be able to get a six-month tax disc when re-taxing.

Applying for a vehicle tax refund

If you want a refund on your first tax disc it will be calculated using the first year rate if the vehicle has been:

  • stolen
  • scrapped
  • moved into a tax class where no vehicle tax is payable, such as the disabled tax class

If you are applying for a refund on your first tax disc it will be calculated using the standard rate if the vehicle has been:

  • sold
  • exported
  • taken off the road

Refunds will be calculated using the standard rate on all tax discs after the first tax disc, in all circumstances.

Used imported vehicles

If you import a vehicle to the UK that’s been previously registered abroad and you register it here, you may have to pay the first year rate.

If the vehicle was registered abroad for less than six months you’ll pay the first year rate when it’s registered in the UK. The first year rate will also be payable if the vehicle has travelled less than 6,000 kilometres (3,728 miles) when it’s first registered in the UK.

If the vehicle was registered abroad for more than six months and travelled over 6,000 kilometres (3,728 miles) you’ll pay the standard rate of vehicle tax.

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