Written by Eva Osborne-Sherlock from Agriland
HM Revenue & Customs (HMRC) has withdrawn its guidance relating to the tax treatment of double cab pickups (DCPUs) after listening to the views of farmers.
Last week, HMRC updated its guidance on the tax treatment for DCPUs following a 2020 Court of Appeal judgement.
The guidance confirmed that, from July 1, 2024, DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes.
Accountancy Moore Thompson had said the change would have “significant implications” for the farming community and small businesses.
HMRC said it acknowledges that the 2020 court decision and resulting guidance could have an impact on businesses and individuals in a way that is “not consistent with the government’s wider aims to support businesses, including vital motoring and farming communities”.
The announcement means DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its tax treatment.
Financial secretary to the Treasury, Nigel Huddleston, 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.”
“This move is resultant of the government making clear that it will be legislating to ensure that DCPU vehicles continue to be treated as goods vehicles for tax purposes,” HMRC said.
“The government will consult on the draft legislation to ensure that it achieves that outcome before introducing it in the next available Finance Bill.”
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Last week, HMRC updated its guidance on the tax treatment for DCPUs following a 2020 Court of Appeal judgement.
The guidance confirmed that, from July 1, 2024, DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes.
Accountancy Moore Thompson had said the change would have “significant implications” for the farming community and small businesses.
HMRC said it acknowledges that the 2020 court decision and resulting guidance could have an impact on businesses and individuals in a way that is “not consistent with the government’s wider aims to support businesses, including vital motoring and farming communities”.
The announcement means DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its tax treatment.
Financial secretary to the Treasury, Nigel Huddleston, 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.”
“This move is resultant of the government making clear that it will be legislating to ensure that DCPU vehicles continue to be treated as goods vehicles for tax purposes,” HMRC said.
“The government will consult on the draft legislation to ensure that it achieves that outcome before introducing it in the next available Finance Bill.”
The post HMRC withdraws proposals to tax double cab pickups as cars appeared first on Agriland.co.uk.
Continue reading on the Agriland Website...