BREAKING NEWS....
We shared last week the news of the change in the tax treatment of double-cab pick ups. TODAY the HMRC have announced that its existing guidance will be withdrawn, meaning that DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its historic tax treatment. Find out more below.
https://www.gov.uk/government/news/update-on-hmrc-double-cab-pick-up-guidance
HMRC has announced it will class most double-cab pickups as company cars for tax purposes from July 2024. This decision is said to reflect their growing use as lifestyle vehicles rather than job-need.
The new tax treatment comes into effect from 1 July 2024, but HMRC has stated that "transitional arrangements" will apply for employers that have purchased, leased, or ordered a double cab pickup before this date. They will be able to rely upon the current rules until 5 April 2028, or up to the point the lease ends or they sell the vehicle, if this comes sooner.
From July, tax treatment will be decided on a two-part test that will establish whether the construction is primarily suited for “the conveyance of goods or burden of any description” and whether any modifications have been made. The expectation is that most (if not all) double cabs will be classed as cars.
For customers interested in leasing a double-cab from OVL, we recommend you speak to one of our team ASAP because vehicles ordered but not delivered before 1 July 2024 as well as those delivered will be subject to the current rules.
Call us - 01491 615500
Email us - sales@ovl.co.uk