HMRC Update on Double Cab Pick Up Guidance
The tax treatment of Double Cab Pick Ups (DCPUs) was set to change from 1 July 2024, with some being classified as cars rather than goods vehicles for tax purposes. However, due to concerns raised by farmers and the motoring industry, the government has decided to maintain the current tax treatment for DCPUs as goods vehicles. This decision ensures that businesses and individuals can continue to benefit from existing tax rules.
The government plans to introduce legislation to solidify this decision and will consult on the draft legislation before it becomes law. This means that the tax on benefits and capital allowances for DCPUs will remain the same, providing consistency and simplicity in the tax system. The updated guidance from HMRC, which was set to change the tax treatment, will be withdrawn, and previous arrangements to help DCPUs owners adapt are no longer necessary.
It's important to note that this change only applies to DCPUs with a payload of one tonne or more, while those with a payload of less than one tonne will still be treated as cars for tax purposes.
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