Guidance released by HMRC on 12 February 2024 : As from 01 July 2024 double cab pick ups (DCPUs) with a payload of 1 tonne or more were to be treated as cars (not goods vehicles) for both capital allowance and benefit in kind purposes.
On 19 February the government announced that it is withdrawing the guidelines on the afternoon of 19/02/24 . DCPUs will now continue to be treated as goods vehicles for tax purposes.
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.”
There will no longer be an increase in the benefit in kind for private use of a double cab pick up. The capital allowances available in the first year of use will not be reduced.
This move also helps keep the tax system a little more simple as the withdrawn guidance for double cab pick ups had not changed their status as a goods vehicle for VAT purposes.
The arrangements that HMRC had announced on 12 Feb 2024 to help DCPU owners adapt to the updated guidance are also now redundant.
DCPUs with a payload of less than one tonne are to continue to be treated as cars.
For further information refer to the HMRC website :
Update on HMRC Double Cab Pick Up Guidance – GOV.UK (www.gov.uk)
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