Change Vehicle Excise Duty (VED) rules so tax is calculated and refunded on a pro-rata daily basis rather than by full calendar month, including when vehicles are sold or taken off a Statutory Off Road Notification (SORN), so motorists pay only for the days they own and use a vehicle.
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Under the current system, when a vehicle is sold part way through a month, the seller receives a refund only for full remaining months, while the buyer must tax the vehicle immediately. The same applies when a vehicle is taken off SORN mid-month. This can result in payment for days the vehicle is not owned or used. With digital systems in place and millions of vehicle transfers annually, it would be fair to modernise VED so motorists pay only for the days they own and use a vehicle.