Update: HMRC issues revised guidance on taxation for double cab pickups

It was announced on Monday 12 February 2024, that HMRC had updated its guidance on the tax treatment of double cab pickups (DPUCs) following a Court of Appeal judgment in 2020. Initial guidance indicated that these vehicles would be treated as cars rather than goods vehicles for tax purposes starting from 1 July 2024.

What is the latest guidance?

After carefully considering feedback from those more likely to be affected by the changes, such as farmers and the motoring industry, the government recognised potential adverse impacts on businesses and individuals, which were congruent with broader aims to support key sectors like motoring and farming.

In light of this, HMRC announced on 19 February 2024 the withdrawal of its updated guidance, meaning that DCPUs will continue to be treated as goods vehicles, preserving their historical tax treatment. The government intends to enact legislation to formalise this decision, ensuring that DCPUs remain classified as goods vehicles for tax purposes.

What does this mean for you? 

• The reversal implies that there will be no increase in benefit in kind tax when employers provide these vehicles, and capital allowances for businesses purchasing DCPUs will remain unaffected.
• This maintains consistency and simplicity in the tax system, providing continued support for DCPUs regarding capital allowances, benefit in kind, and VAT.

How we can help you

If you would like to discuss the revised guidance, or would benefit from any further clarification, contact our specialist tax department today.

Email: [email protected] 

Phone: 01926 422292