PARLIAMENTARY WRITTEN QUESTION
(10 February 2025)

To ask the Chancellor of the Exchequer, with reference to paragraph 5.91 of the Autumn Budget 2024, what assessment she has made of the potential impact of the reclassification of double cab pick-ups with a payload of one tonne or more as cars for tax purposes on farmers from April 2025.

Asked by:
Edward Morello (Liberal Democrat)

Following recent case law, Double Cab Pick Ups must be treated as cars, rather than goods vehicles, for certain tax purposes, based on their primary suitability. The government will not legislate to treat DCPUs as goods vehicles as this would depart from the broader principles underpinning the Court of Appeal’s judgement, and be a significant tax break worth hundreds of millions per year.

As per paragraph 5.91, this will not affect the capital allowances treatment of anyone who already owns a DCPU; anyone who purchases a DCPU before April 2025 will still benefit from the previous tax treatment. For Benefit in Kind, anyone who has accessed a DCPU as a company car before April 2025 will not be impacted until the sooner of disposal of the vehicle, April 2029 or when their lease expires; and employers that have purchased, leased, or ordered a DCPU before 6 April 2025 will also be able to benefit from the previous treatment, until the earlier of disposal, April 2029, or when the lease expires.

There are alternatives available to farmers, which provide the same off-road and haulage capabilities and are still treated as goods vehicles, such as single cab pick-ups and 4 x 4 vans.

Answered by:
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