The Authorities has modified its thoughts about the way it taxes double cab pick-up vans, per week after it mentioned that from July 1, 2024, these vans could be handled like vehicles for tax functions.
Now only a week after asserting this, and after outcry from the motor retail trade, it has determined to cancel the plan.
The unique concept was that from July 1, 2024, any newly registered double cab pick-up vans with a payload of 1 tonne or extra – beforehand classed as gentle industrial autos – could be thought-about vehicles as a substitute of products autos for tax causes. This might have an effect on issues like capital allowances and benefit-in-kind.
Nevertheless, after going through criticism from the SMMT, the Authorities determined to backtrack. They realized that the change would improve prices for companies and people. So, they determined to maintain the present guidelines in place. Because of this double cab pick-up vans will nonetheless be handled as items autos, and other people can preserve benefiting from the outdated tax guidelines.
The Authorities mentioned they perceive that the brand new guidelines may not be honest to companies and people, particularly these in farming and transportation. They’ll now speak to individuals in regards to the new legal guidelines earlier than making them official within the subsequent Finance Invoice.
In a replace posted on the Authorities web site, it mentioned: “The federal government has acknowledged that the 2020 court docket choice and resultant steerage replace may have an effect on companies and people in a approach that isn’t according to the federal government’s wider goals to assist companies, together with very important motoring and farming industries.”
Nigel Huddleston, who works for the Treasury, mentioned, “We’ll change the legislation to keep away from any unintended issues for farmers, van drivers, and the UK financial system.”
The above doesn’t have an effect on double cab pick-ups with a payload of lower than one tonne as they may proceed to be handled as vehicles.
Ian McMahon, automotive companion at UHY Hacker Younger, mentioned he firmly believes that the power for the motor sector to plan and successfully facilitate change is basically based mostly on clear coverage choice.
“In current occasions we’ve seen the ZEV mandate shift, and uncertainty on the enterprise in form charges for particular EV’s or Double Cabs doesn’t promote confidence for patrons. We will solely think about the variety of calls and laborious work by car admin groups, fleet car departments, lease brokers and accountants, from involved prospects between the preliminary discover and the U-turn,” he mentioned.
“Maybe extra session with the trade would help in providing a transparent path for coverage makers and permit the trade to work in the direction of a shared, longer-term technique.”
