Question to the Department for Transport:

To ask the Secretary of State for Transport, how much revenue has been retained as a result of refunds for cancelled vehicle tax only being given for any full months of remaining tax since October 2014.

The Driver and Vehicle Licensing Agency (DVLA) has always issued refunds of Vehicle Excise Duty (VED) for any full, unexpired months remaining. This is a legal requirement and did not change when the paper tax disc was abolished in October 2014.

In the financial year 2014/15, the DVLA collected £6 billion in VED and paid £216 million in refunds. The amount of VED refunded in the previous financial year was £197 million.