HMRC U-TURN ON THE TAX TREATMENT OF DOUBLE CAB PICK UPs

On Monday 12 February 2024 HMRC updated its guidance on the tax treatment of Double Cab Pick Ups (DCPUs) stating that 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.
 

The government has subsequently said that it had listened to views from farmers and the motoring industry, and acknowledged that the impact on businesses and individuals would not be consistent with the government’s wider aims to support businesses, including vital motoring and farming industries.  Yesterday, HMRC announced the withdrawal of this guidance meaning DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its historic tax treatment.
 

This update is only with reference to DCPUs with a payload of one tonne or more and DCPUs with a payload of less than one tonne will continue to be treated as cars.