Attention: Double Cab Pick Up (DCPU) owners – HMRC reverses tax decision

On 12 February 2024, HMRC made significant updates to its guidance regarding the tax treatment for DCPU owners. Following a 2020 Court of Appeal judgement, it was originally announced that from 1 July 2024, DCPUs with a payload of one tonne or more would be classified as cars rather than goods vehicles for tax purposes.

However, after considering feedback from farmers and the motoring industry regarding the potential impacts of this change, the government has decided to reverse its decision. HMRC has announced the withdrawal of its updated guidance, meaning that DCPUs will continue to be treated as goods vehicles, maintaining their favourable benefit-in-kind tax treatment.

This decision comes as a result of the government’s commitment to supporting businesses, including the vital motoring and farming sectors. Legislation will be introduced in the next Finance Bill to ensure that DCPUs remain classified as goods vehicles.

HMRC withdrew its updated guidance on 19 February 2024. Any arrangements announced to help DCPU owners adapt to the previous guidance are now redundant.

It’s important to note that this update only applies to DCPUs with a payload of one tonne or more. DCPUs with a payload of less than one tonne will continue to be treated as cars.

You can find out more on the HMRC website here. If you need any support just let us know by contacting Lianne@langricks.com

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