In extraordinarily quick time, HMRC has today (19 February 2024) withdrawn its changed taxation treatment of double cab pickups which were due to be implemented on 01 July 2024.
It was just last week that HMRC said double cabs over 1 tonne would no longer be classed as commercial vehicles but as cars for both benefit in kind taxation purposes and for capital allowances following a 2020 Court of Appeal judgment – see our news story Change in the benefit-in-kind taxation of double cabs from July 1.
However, following consultation with farmers and the motoring industry on the potential impacts of the change in tax treatment, the Government has acknowledged that the 2020 court decision and resultant guidance update could have an impact on businesses and individuals. The Government believes this impact was not consistent with its wider aims to support business.
As a result, HMRC is is withdrawing its existing guidance. It means that double cabs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from the historic tax treatment of double cabs.
The government added that it will be legislating to ensure thatdouble cab pickups would continue to be treated as goods vehicles for tax purposes. Draft legislation will be introduced at the next available Finance Bill.
Nigel Huddleston, Financial Secretary to the Treasury, commented:
“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.”
