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HMRC have reversed a previous decision (originally published 12 February 2024) on the tax status of Double Cab Pick Ups (DCPUs), following an earlier 2020 Court of Appeal judgment. The earlier decision, now reversed, had announced that effective from 1 July 2024, DCPUs 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 February announcement caused a significant backlash from farmers and the motoring industry on the potential impacts of the change in tax-treatment. In their surprising U-turn, just over one week after the initial announcement, the government has now retracted its decision to class DCPUs as cars. This move will ensure that businesses and individuals can continue to benefit from the historic tax treatment of DCPUs.

The Financial Secretary to the Treasury, said:

“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.”

DCPUs with a payload of less than one tonne will continue to be classed as cars as has historically been the case.

Source:HM Treasury | 24-02-2024