Taxing a Car After SORN or When Buying: Rates and Rules for 2026/27

Vehicle Tax

Last reviewed: 23 July 2026

Vehicle tax (VED) rates 2026/27

Source: GOV.UK, Vehicle tax rate tables

How is a car taxed after a SORN?

Taxing after a SORN is done online at gov.uk/vehicle-tax using the 11 digit V5C reference, and the SORN ends automatically the moment the tax starts.

No separate step is needed to cancel the SORN. The online service, the 24 hour phone line on 0300 123 4321 and the Post Office all accept the V5C log book reference, and payment can be annual, six monthly or by monthly Direct Debit. The vehicle must also hold a valid MOT where it is more than 3 years old, because DVLA checks MOT status electronically at the point of taxing, and insurance must be in place before the car is driven.

The one legal journey allowed for an untaxed, SORN declared vehicle is driving to a pre booked MOT test appointment. Outside that narrow exception, using an untaxed vehicle on a public road risks an £80 out of court settlement letter, clamping with release fees, and prosecution with a fine of up to £1,000. Enforcement is automatic through number plate recognition against the DVLA database rather than depending on a roadside stop.

How is a newly bought car taxed?

The buyer taxes the car before driving it away, using the 12 digit reference from the new keeper slip (V5C/2), because tax no longer transfers with the vehicle.

Since tax became non transferable, every change of keeper resets it. The green new keeper slip carries the reference number that works in the online service immediately, even before the full V5C arrives in the new keeper name. Buying from a dealer, the process is the same and reputable dealers walk the buyer through it before handover. The seller receives an automatic refund of remaining full months once DVLA processes the change of keeper, which means both parties pay for the month of sale, a quirk of the first of the month rule.

A brand new car pays a first year rate set by CO2 emissions, from £10 for zero emission cars to £5,690 at the top band, before moving to the £200 standard rate from year 2. Cars with a high list price also attract the expensive car supplement of £440 a year for years 2 to 6, and from April 2026 the supplement threshold for zero emission cars moved to £50,000 while remaining at £40,000 for petrol and diesel models.

When does vehicle tax start and can it be backdated?

Tax runs from the first day of the current month regardless of the purchase date, and it cannot be backdated, while renewal with a V11 reminder can be done up to 2 months in advance in limited cases.

Taxing on the 25th of a month still charges from the 1st of that month. This makes end of month timing genuinely valuable when re taxing a stored vehicle: waiting until the 1st of the next month avoids paying for weeks in which the car could not be used. Standard renewal opens from the 5th of the month before the current tax expires, and a V11 reminder allows taxing up to 2 months ahead in limited circumstances.

The first of the month rule also drives the refund mechanics. Refunds on SORN, sale, export or scrapping cover only full remaining months, so declaring SORN on the 2nd of a month sacrifices almost a whole month of tax. Aligning both re taxing and SORN declarations with month boundaries is the simplest legitimate saving available on VED.

What does car tax cost in 2026/27?

Most cars registered from April 2017 pay the £200 standard rate, cars from 2001 to 2017 pay CO2 banded rates from £20 to £790, and new cars pay first year rates from £10 to £5,690.

The 2026/27 uprating lifted the standard rate from £195 to £200, with Direct Debit monthly instalments totalling around £210 across the year for the convenience of spreading payment. Pre 2017 cars remain on the older CO2 band system, where the cleanest bands that were previously free now pay £20 and the highest emitters pay £790. Cars registered before March 2001 are charged on engine size alone, with a lower rate up to 1549cc.

Electric vehicles lost their exemption in April 2025 and now pay £10 in the first year and the full standard rate thereafter. A pay per mile charge for electric and plug in hybrid cars has been announced for April 2028 at roughly 3p per mile for EVs, on top of standard VED, but it has no effect on the 2026/27 year. Vehicles more than 40 years old qualify for the free historic tax class, which for 2026/27 covers vehicles built before 1 January 1986, though the keeper must still apply for the class and tax the vehicle at £0.

What checks run before tax is granted?

DVLA electronically verifies MOT status at the point of taxing, and insurance is enforced separately against the Motor Insurance Database, so both need to be in place before the car is used.

The taxing transaction itself requires a valid MOT for vehicles over 3 years old. Insurance is not checked at the till, but the Motor Insurance Database is enforced continuously against the vehicle record, and an uninsured taxed vehicle triggers enforcement letters under the continuous insurance rules unless a SORN is in place. The practical sequence when reviving a stored car is therefore MOT first, insurance second, tax third, all before the first road journey.

Tax status for any vehicle can be checked free at gov.uk/check-vehicle-tax using the registration number, which shows tax expiry and MOT expiry together. Buyers should run this check before handing over money, since it also flags an existing SORN, an expired MOT, or an export marker on the record.

Frequently asked questions

Can a car be driven home after buying it without tax?

No. Tax must be in place before the journey home, using the new keeper slip reference online or by phone. The only untaxed journey permitted is to a pre booked MOT appointment.

Does ending a SORN require a separate application?

No. Taxing the vehicle ends the SORN automatically from the moment the tax takes effect.

Is there a grace period for vehicle tax?

No. There is no legal grace period after purchase or after a SORN ends. Enforcement runs automatically through number plate recognition against DVLA records.

How far in advance can vehicle tax be renewed?

Renewal opens from the 5th of the month before the current tax runs out, and a V11 reminder can allow taxing up to 2 months ahead in limited cases.

Do electric cars pay road tax in 2026/27?

Yes. Electric cars pay 10 pounds in the first year and the 200 pounds standard rate from year 2, and those with a list price over 50,000 pounds also pay the expensive car supplement.