Budget tax move hammers one tonne double cap pick-ups

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Double cab pickups with a payload of one tonne or more will be classed as cars for benefit in kind and capital allowance purposes, greatly increasing the tax cost of these vehicles.

That’s the view from tax expert Michelle Malone at accountancy and advisory firm Xeinadin.

“Dealers will remember the issues caused when a change in treatment was last proposed, including customers cancelling orders so this is again a tax measure that will present the industry with business challenges,” said Malone.

In February the last government

to tax double cab pick-ups as cars made earlier this month.

On 12 February it announced that 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.

HMRC then announced that its existing guidance will be withdrawn, meaning that DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its historic tax treatment.