Government U-turn on double cab pickups
After an earlier announcement that the tax treatment of double cab pickups would change later this year, the government has almost immediately changed its mind. What is the revised position?
We previously reported that the tax treatment of double cab pickup trucks was to change with effect from 1 July 2024, with the VAT definition no longer being followed. However, just a week on from that announcement, the government has taken onboard concerns raised by farmers and other concerned users and scrapped the change. Instead, the legislation will be amended using the next Finance Bill to ensure that double cab pickups with a payload of at least one tonne will be treated as vans, for both income tax and capital allowances purposes. This will mirror the VAT definition, which HMRC has always referred to in its guidance - but this will now be on a statutory footing. Smaller pickups with a payload below one tonne will continue to be treated as cars rather than vans.
Related Topics
-
Accelerate tax relief for the cost of equipment
You’re upgrading your company’s IT equipment as it’s now several years old. Naturally your company will get tax relief for the purchases but what’s the tax position if you sell or scrap the old equipment, and how might you improve it?
-
Opt out of winter fuel payments by 15 September
HMRC has issued new guidance on the winter fuel payments. What do you need to know?
-
Capital gains tax break for job-related accommodation
You’re in the process of selling a property that you bought as your home but because of your job have never lived in. You’ve been told that you’ll have to pay tax on any gain you make, but might a special relief get you off the hook?