One week on from proposed new company car taxes for double-cab pick-up vehicles HMRC has scrapped the plans.
Company automobile scheme customers who purchased or leased a double-cab pick-up truck had been as a result of see the benefit in kind (BIK) funds sky rocket below proposals introduced on 12 February, however in a dramatic U-turn after criticism from farmers and the motor trade it has reversed its determination.
HRMC had introduced that they’d not take into account double-cab pick-up trucks as industrial autos, as their second row of seats allowed them to have a twin perform as a private car.
The change to firm automobile tax BIK for double-cab pick-up vehicles was as a result of be applied on all new purchases or leases from 1 July 2024, and would have meant house owners not paid a flat fee of BIK for all industrial autos and as a substitute be taxed utilizing the emissions-based system used for passenger vehicles.
Double-cab pick-up house owners would due to this fact seemingly have been lumbered with the very best 37% fee of BIK because of the excessive CO2 emissions of most pick-up vehicles.
In a press release, HMRC stated “its existing guidance will be withdrawn” and that double-cab pick-ups would “continue to be treated as goods vehicles rather than cars”. As a outcome, “businesses and individuals can continue to benefit from its historic tax treatment”.
The preliminary determination was as a result of a ruling within the Court of Appeal that said multi-purpose autos like pick-up vehicles are passenger vehicles, after HMRC received a case towards Coca-Cola over the classification of five-seat vans.
The repercussions of that ruling had meant that the tax “loophole” permitting pick-up vehicles to be classed as industrial autos was forged into doubt, threatening the excessive quantity of gross sales for pick-up vehicles within the UK.
Despite the change of coronary heart, nevertheless, it’s going to solely have an effect on double-cab pick-ups with a payload of multiple tonne. Double-cab pick-ups with payloads under 1000kg, just like the Ford Ranger Raptor, will proceed to be classed as passenger vehicles.