On Monday 12 February 2024 HMRC updated its guidance on the tax treatment of double cab pick-ups following a 2020 Court of Appeal Judgment. The guidance had confirmed that from 1 July 2024 double cab pick-ups with a payload of 1 tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefits in kind purposes.
Since that guidance was published there has been extensive representation, particularly from the motoring and farming industries, on the potential impacts of the change in tax treatment. The Government has acknowledged the 2020 Court decision will have an impact on businesses and on individuals in a way that is not consistent with their wider aims to support businesses.
As a result, on Monday 19 February 2024 HMRC withdrew the guidance issued just the week before and have confirmed that double cab pick-ups will continue to be treated as goods vehicles rather than cars and businesses and individuals can continue to benefit from the historic tax treatment.
Please note the update is only with regard to double cab pick ups with a payload of 1 tonne or more. Double cab pick-ups with a payload of less than 1 tonne continue to be treated as cars.