The government has put the brakes on its planned tax changes to double-cab pick-up trucks following an outcry from an array of business sectors, including agriculture.
The changes would have seen double-cab pick-up trucks having the same benefit in kind (BiK) tax classification as company cars. With this based on carbon dioxide emissions and vehicle retail price, many would have seen a significant tax increase.
After the uproar, the Treasury has backed down and in a statement acknowledged that its new guidance would have an effect “not consistent” with its broader objectives of supporting farmers and the automotive industry. “We will change the law at the next available Finance Bill in order to avoid tax outcomes that could inadvertently harm farmers, van drivers and the UK’s economy,” said Nigel Huddleston, Treasury financial secretary.
The move was originally proposed to close what HMRC considered a tax loophole that exempts employees from private use BiK classification.
The statement confirmed that double-cab pick-up trucks will continue to be treated as goods vehicles.
