In something of a fast-moving development, HMRC have confirmed that double-cab pickups will continue to be treated as vans rather than cars.
HMRC had issued guidance in its Employment Income Manual on 12 February 2024 to revise the treatment of double-cab pickups with a payload of one tonne or more (essentially, the maximum weight the vehicle is legally permitted to carry), following the Court of Appeal decision in Payne and others v HMRC [2020] EWCA Civ 889 that most multi-purpose vehicles should be treated as cars. This would have significantly increased the benefit in kind charge for employees from 1 July 2024 and restricted capital allowances available to businesses on the purchase of new pickups for their trade.
On 19 February, the government reversed the position, confirming that the vehicles will continue to be treated as goods vehicles for tax purposes, maintaining the more generous treatment.
The government intends to consult on draft legislation (to ensure it does what it is intended to do) before introducing the provisions in the ‘next available Finance Bill’. As Nigel Huddleston, Financial Secretary to the Treasury confirmed: ‘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.’
HMRC’s guidance on the treatment of double-cab pickups for benefit in kind purposes is available from EIM23150 onwards.
In something of a fast-moving development, HMRC have confirmed that double-cab pickups will continue to be treated as vans rather than cars.
HMRC had issued guidance in its Employment Income Manual on 12 February 2024 to revise the treatment of double-cab pickups with a payload of one tonne or more (essentially, the maximum weight the vehicle is legally permitted to carry), following the Court of Appeal decision in Payne and others v HMRC [2020] EWCA Civ 889 that most multi-purpose vehicles should be treated as cars. This would have significantly increased the benefit in kind charge for employees from 1 July 2024 and restricted capital allowances available to businesses on the purchase of new pickups for their trade.
On 19 February, the government reversed the position, confirming that the vehicles will continue to be treated as goods vehicles for tax purposes, maintaining the more generous treatment.
The government intends to consult on draft legislation (to ensure it does what it is intended to do) before introducing the provisions in the ‘next available Finance Bill’. As Nigel Huddleston, Financial Secretary to the Treasury confirmed: ‘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.’
HMRC’s guidance on the treatment of double-cab pickups for benefit in kind purposes is available from EIM23150 onwards.
