HomeMotoring UKAnother DVLA Rip off!! Jayne Henry September 3, 2010 Motoring UK, Registration Industry Sky-High first-year VED isn’t refundable if you decide not to keep your car Motorists are being habitually ripped off by the DVLA. Under certain circumstances the DVLA is refusing to fully refund the new more expensive first year road tax, leaving some motorists out of pocket by more than £500. The HM Treasury spokesperson confirmed that, unless a car is stolen or written off, it is current government policy to refund only the normal rate of road tax. This will be another prong of the government’s policy to discourage the sale of high-carbon cars. The reasoning behind this is that if the DVLA issued full refunds for the first-year road tax in every case, it would be very easy for owners to avoid paying it simply by transferring ownership of the car to a family member. In cases where people feel they have been harshly treated, it is possible to appeal to the DVLA for a full refund, but the refund policy will remain unchanged. So a refund on a band M car – whether it’s a V8 Jaguar XJ, 2.8 diesel Jeep Wrangler of Ferrari 458 Italia- will leave you £515 out of pocket. After speaking the DVA this morning, they have confirmed the following: You are entitled to a full refund if: Your vehicle is stolen Your vehicle is scrapped You are awarded Disability Tax Exemption You are NOT entitled to a full refund if: You sell your vehicle Your vehicle is going on SORN You Export your vehicle