HMRC Selects Reverse On Double Cab Tax Decision

IN WHAT will be a significant relief to SMEs and small businesses – not to mention property developers we suspect – HMRC has reversed its decision on the treatment of double cab pickup trucks.

Only last week, HMRC said that 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. The decision followed a 2020 Court of Appeal judgment and was due to start 01 July 2024. See our story Tax Change For Double Cab Pickup Trucks.

However, following pressure from 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 in a way that was not consistent with the government’s wider aims to support businesses. 

So as of today (19 February 2024), HMRC has announced that it 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 that double cab pickups would continue to be treated as goods vehicles for tax purposes. Draft legislation will be introduced at the next available Finance Bill.