Double-cab pick-up tax hike CANCELLED

HMRC has backtracked on its double-cab pick-up tax hike from July, confirming that they will continue to be treated as commercial vehicles rather than passenger vehicles.

The planned change was announced last week and would have come in to force from 1 July. It would have resulted in a higher benefit-in-kind (BiK) rate being applied for business users taking delivery of double-cab vehicles after this date. 

But the government has confirmed that it has listened to concerns; HMRC has confirmed that businesses and individuals will continue to benefit from its historic tax exemption after this date.

Read more: BiK rates 2024 – Everything you need to know

This move is resultant of the government making clear that it will be legislating to ensure that double-cab pick-up vehicles continue to be treated as goods vehicles for tax purposes.

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 change would have meant instead of payload, HMRC would have used CO2 emissions to calculate tax. Considering most double-cab pick-ups are fitted with larger diesel engines, it means many of them would have fallen under the full 37% BiK rate.

In real terms, that’s around five times more tax than they are currently subjected to. Double-cab pick-ups have been seen as a lucrative way of keeping VAT and BiK tax rates down for business users. But that’s all set to change now.  

It would also have meant a change for manufacturers. While some pick-ups are available in single-cab form, not all of them are. For example, the Volkswagen Amarok and KGM Musso currently offer only double-cab options in the UK.