14 February 2024
This guidance has now been revoked. Update to be found here.
New guidance on the Benefit in Kind treatment of double cab pickups (DCPUs) has been published by HM Revenue and Customs (HMRC).
HMRC's Employment Income Manual, EIM23150 has been updated to amend the interpretation of DCPUs for tax purposes.
A new Employment Income Manual, EIM23151 has been introduced to clarify the new rules, which will take effect from 1 July 2024.
Below is an extract from the manual describing the change from 1 July 2024 and the transitional arrangements that will be in place. EIM23151 also includes some examples of how the arrangements will apply.
"Going forward, classification of double cab pickups will therefore need to be determined by assessing the vehicle as a whole at the point that it is made available to determine whether the vehicle construction has a primary suitability as per the two-part test outlined at EIM23115 onwards. It therefore follows that from 1 July 2024 most if not all double cab pickups will be classified as cars when calculating the benefit charge. This is because typically these vehicles are equally suited to convey passengers and goods and have no predominant suitability.
Transitional arrangements
Transitional arrangements will apply for employers that have purchased, leased, or ordered a double cab pickup before 1 July 2024, whereby they will be able to rely upon the previous treatment until the earlier of disposal, lease expiry, or 5 April 2028. The position prior to 1 July 2024 remains unchanged as outlined at EIM23150."
The capital allowance guides, CA23510 and CA23511, have also been updated to reflect HMRC's change in position.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.