​ HMRC has updated its guidance on the tax treatment of double cab pick-ups​

On Monday February 12, HMRC updated its guidance on the tax treatment of double cab pick-ups following a 2020 Court of Appeal judgment. The guidance stated that from July 1, 2024, all double cabs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes. The new rules were due to apply to all double-cab pick-ups ordered after July 1 - any vehicles already on fleet or ordered before July would still be subject to the existing classification until April 2028.

Since then, the government has listened carefully to views 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 is not consistent with the government’s wider aims to support businesses, including vital motoring and farming industries.

The Government has now performed a spectacular U-turn over its decision to treat double cab pick-ups as cars for taxation purposes by dropping the policy just seven days after announcing it.

Consequently, 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.