News
HMRC backtracks on tax changes for double cab pickups
HM Revenue and Customs (HMRC) has reversed its changes to the classification of double cab pickups from 1st July 2024.
By Catherine Heinen, FCCAA week after making the announcement on 12th February that double cab pickups, with a payload of more than one tonne, would be classed as cars, rather than vans, HMRC has backtracked on its upcoming changes. The changes would have affected the benefit in kind, capital allowance and VAT treatment of the vehicles in businesses.
Feedback from farmers and the motor industry about the changes to the tax treatment of double cab pickups, found it would have a negative effect on businesses.
HMRC recognised the effect this would have on businesses is not consistent with its wider views and aims. The changes are therefore being cancelled and the tax treatment of double cab pickups will not change, they will continue to be classed as goods vehicles rather than cars.
Nigel Huddleston, 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.”
Date published 20 Feb 2024
Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
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