Having last week announced that double cabs would undergo a significant change in tax treatment following a 2020 Court of Appeal judgment- see Benefit-in-kind changes reclassify double cabs as cars not vans from July 2024 – HMRC has changed its decision.
Following consultation with farmers and the automotive industry on the potential impacts of the tax treatment change, the Government has acknowledged that the 2020 court decision and resultant guidance update could have an impact on businesses and individuals. The Government believes this impact is not consistent with its wider aims to support business.
As a result, HMRC is withdrawing its existing guidance. It means that double cabs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from the historic tax treatment of double cabs.
The government added that it will be legislating to ensure that double cab pickups would continue to be treated as goods vehicles for tax purposes. Draft legislation is due to be introduced at the next available Finance Bill.
Nigel Huddleston, Financial Secretary to the Treasury, commented:
“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.”
Having last week announced that double cabs would undergo a significant change in tax treatment following a 2020 Court of Appeal judgment- see Benefit-in-kind changes reclassify double cabs as cars not vans from July 2024 – HMRC has changed its decision. Following consultation with farmers and the automotive industry on the potential impacts of the … Continued
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