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
-
In-year relief claim? Prove it
Taxpayers not in self-assessment and who need to claim relief on pension contributions must now send evidence to HMRC. What’s the full story?
-
HMRC has withdrawn Form 652. How should you notify VAT errors going forward?
-
Can paying interest to your company save tax?
You recently borrowed a substantial sum of money from your company rather than take extra salary or dividends. Your bookkeeper says it might be more tax efficient if your company charged you interest. This sounds counter-intuitive but is it correct?