Government U-turn on Double Cab Pickup Tax Changes

A week after the controversial new company car tax proposal for double-cab pick-up trucks, HMRC has decided to scrap the idea altogether.

Those who had bought or leased a double-cab pick-up truck were facing a significant increase in benefit-in-kind (BIK) payments following the announcement on 12th February. However, following widespread criticism HMRC made a sudden U-turn on its decision.

Initially, HMRC had argued that double-cab pick-up trucks should not be considered as commercial vehicles due to their second row of seats, which allows them to serve as personal vehicles as well.

This reclassification would have likely resulted in owners facing the highest 37% rate of BIK, primarily due to the typically high CO2 emissions of most pick-up trucks.

There has since been an announcement from the government stating that they have taken into account the feedback from farmers and the motoring industry regarding the potential consequences of the recent changes introduced last week. As a result, they have decided to retract the new guidance. This means that double-cab pick-up trucks will maintain their classification as commercial vehicles for BiK company car tax, as per the statement released by the Treasury.

The government has acknowledged that the implementation of the new guidance would have had effects that are not aligned with its broader goals of supporting farmers and the automotive industry. Nigel Huddleston, the Treasury financial secretary, stated, "We will make amendments to the legislation in the upcoming Finance Bill to prevent any tax consequences that could unintentionally harm farmers, van drivers, and the overall economy of the UK."

Read the full Gov update on HMRC Double Cab Pick-up tax changes.