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Just found this in DirectGov
Selling a vehicle
From 1 October, vehicle tax is not transferable so you won’t be able to include any remaining tax when you sell a vehicle. If you sell a vehicle after 1 October and you have notified DVLA , you will automatically get a refund for any full remaining months left on the vehicle tax. The refund will be sent to the keepers details on DVLA records so you need to make sure that these are correct.
Vehicle tax refunds
You will no longer need to make a separate application for a refund of vehicle tax. DVLA will automatically issue a refund when a notification is received from the person named on DVLA vehicle register that the:
- vehicle has been sold or transferred
- vehicle has been scrapped at an Authorised Treatment Facility
- vehicle has been exported
- vehicle has been removed from the road and the person on the vehicle register has made a Statutory Off Road Notification ( SORN )
- person on the vehicle register has changed the tax class on the vehicle to an exempt duty tax class
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