Tax treatment change on double cab pick-ups

22 Feb 2024

UK rolling hills

The government has changed stance on the tax treatment of double cab pick-ups (DCPUs), just a week after proposed changes were announced that such vehicles with a payload of one tonne or more would almost always be treated as cars for tax purposes, particularly for calculation of benefit in kind charges and capital allowances.

On 12 February, HMRC had updated its employment income and capital allowances manuals to explain that, from 1 July 2024, most, if not all, double cab pick-ups would be treated as cars for tax purposes. The updated guidance stated that “this is because typically these vehicles are equally suited to convey passengers and goods and have no predominant suitability.”

The subsequent government announcement on 19 February stated: “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”. After consideration and listening to the views of farmers and the motoring industry, the change would not have been: “consistent with the government’s wider aims to support businesses, including vital motoring and farming industries.”

Martyn Dobinson, Partner, and a member of the firm’s Land and Rural Practice Group, says:

“This is a welcome move. For many farm and estate businesses these vehicles are workhorses of the business, and it is a relief that they will continue to be treated for tax purposes as goods vehicles rather than cars. It’s good that the government has listened to the farming sector and made this swift change of direction.”

For any queries on this matter, please contact Martyn Dobinson.

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Martyn Dobinson
Partner, Manchester

Key experience

Martyn works with families and owner-managed businesses in different sectors, with particular focus on landed estates, farming, agribusiness and property.