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Update on Tax Status of Double Cap Pick Ups

Update on the tax status of Double Cab Pick Ups

29 February 2024

HMRC's February 12, 2024 update initially reclassified Double Cab Pick Ups (DCPUs) with a one-tonne or more payload as cars, causing concern. A surprising government U-turn a week later preserves historic tax treatment, addressing worries from farmers and the motoring industry. DCPUs under one tonne remain classified as cars.

HMRC had published an update, on 12 February 2024. It was on the tax status of Double Cab Pick Ups (DCPUs), following a 2020 Court of Appeal judgment. The update announced that effective from 1 July 2024, DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes.

This announcement caused a significant backlash. Farmers and those in the motoring industry had concerns on the potential impacts of the change in tax-treatment. In a surprising U-turn,  a week after the initial announcement, the government has now retracted its decision to class DCPUs as cars. This means businesses and individuals can continue to benefit from the historic tax treatment of Double Cab Pick Ups. HMRC’s guidance published on 12 February 2024 has been withdrawn.

The Financial Secretary to the Treasury, said:

“We will change the law at the next available Finance Bill in order to avoid tax outcomes that could inadvertently harm farmers, van drivers and the UK’s economy.”

Double Cab Pick Ups with a payload of less than one tonne will continue to be classed as cars.

Source: HM Treasury Sun, 25 Feb 2024 00:00:00 +0100

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