Major U-turn from HMRC on retracting its current guidelines on the tax treatment of Dual Cab Pick-Ups

In today's major U-turn, HMRC declared that it will retract its current guidelines on the tax treatment of Dual Cab Pick-Ups (DCPUs). As a result, DCPUs will maintain their classification as commercial vehicles instead of personal cars, preserving the longstanding tax advantages for businesses and individuals.The government has taken into account the feedback from the agricultural and automotive sectors regarding the potential effects of altering the tax regulations. It has recognized that the guidance issued following the 2020 court ruling might affect businesses and individuals in ways that do not align with its broader objectives of supporting key industries, including those in motoring and farming.

The government has taken into account the feedback from the agricultural and automotive sectors regarding the potential effects of altering the tax regulations. It has recognized that the guidance issued following the 2020 court ruling might affect businesses and individuals in ways that do not align with its broader objectives of supporting key industries, including those in motoring and farming.

Today, HMRC declared that it will retract its current guidelines. As a result, Dual Cab Pick-Ups (DCPUs) will maintain their classification as commercial vehicles instead of personal cars, preserving the longstanding tax advantages for businesses and individuals.

This decision stems from the government’s commitment to legislate the continued classification of DCPU vehicles as commercial vehicles for taxation.

Before the introduction of this legislation in the forthcoming Finance Bill, there will be a consultation period to ensure the legislation fulfills its intended purpose.

Nigel Huddleston, the Financial Secretary to the Treasury, stated:

“In the upcoming Finance Bill, we intend to amend the law to prevent tax situations that could unintentionally damage the livelihoods of farmers, van drivers, and the British economy.”