31 October 2024
Double Cab Pick Up (DCPU) vehicles are to be treated as cars for corporation tax from 1 April 2025 and Income tax from 6 April 2025. This applies to their position for capital allowances, benefits in kind and some deductions from business profits.
This follows from a Court of Appeals judgement, after which HM Revenue and Customs (HMRC) decided to amend the rules on tax treatment before swiftly changing stance when industry outcry forced their hand. At that time, HMRC stated they would legislate to keep the treatment of these vehicles as it was before.
Now it seems they have had another change of heart and the ruling on DCPU vehicles being cars will be enforced.
Transitional benefit in kind arrangements will apply to anyone who has purchased, ordered or leased a DCPU before 6 April 2025. Additionally, they will benefit from the previous treatment until disposal, lease expiry or 5 April 2029, whichever comes earliest.
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