Since 1 October 2014, you no longer need to make a separate application on a V14 for a refund of vehicle tax. DVLA automatically issues a vehicle tax refund when a notification is received from the registered keeper that the:
registered keeper has changed the tax class on the vehicle to an exempt duty tax class
Customers should ensure that the dates of acquisition and/or disposal provided on the notification via the vehicle registration certificate (V5C or logbook), V5C/2 and V5C/3 are current and accurate.
Taxing on behalf of a new keeper
Motor traders are asked to ensure that if they tax a vehicle on behalf of a new keeper, the V5C/2 should be used at the point when sale is agreed. Details of the new keeper should be completed on the V5C and sent to DVLA. The V5C/2 should be passed to the new keeper.
DVLA also suggest that motor traders may want to remove existing tax discs from vehicle windscreens to help new keepers understand that vehicle tax is no longer transferrable and must be taxed before being used on the road.