The Government reversed its stance on the decision to treat double cab pick-ups as cars for taxation purposes, retracting the policy just a week after its initial announcement.

On 12^th February, HMRC’s guidance was updated following a 2020 Court of Appeal judgement. The new guidelines stated that starting from July 1, 2024, all double cabs with a payload exceeding one tonne would be considered cars instead of goods vehicles for capital allowances and benefit-in-kind purposes.

However, the Government has decided to withdraw the new guidance, meaning that double cap pick-ups will continue to be treated as good vehicles, rather than cars. This allows businesses and individuals to continue to benefit from the historic tax treatment.

Nigel Huddleston, Financial Secretary to the Treasury, said “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.”