In a well-received turn of events, the government has dramatically reversed its decision to alter the taxation of double cab pick-up trucks, a move that had faced considerable backlash.
This turnaround came only a week after the initial announcement of the impending change that was set to take effect from July 1, 2024. The swift reversal was motivated by the outcry expressed by the motor industry, leading officials to swiftly scrap the proposed overhaul entirely.
Originally, the government had sought to reclassify double cab pick-up trucks with a payload capacity of one tonne or more as cars instead of light commercial vehicles for taxation purposes.
For those supplied a pick-up truck with a payload of over one tonne as a company vehicle, the current taxation for personal use makes them an attractive proposition in that they are treated the same as a van:
Pick Up/Van Taxation (Personal Use) 2023/2024 (As of 6th April 2023)
Taxable benefit of £3,960 in the tax year 2023/24
Fuel benefit of £757 in the tax year 2023/24
Calculation examples (for the year): Pick Up/Van Only benefit = £3,960
20% taxpayer = £792
40% taxpayer = £1,584
Pick Up/Van & Fuel Benefit (£3,960 + £757) = £4,717
20% taxpayer = £943
40% taxpayer £1,887
The proposed change would have potentially seen thousands of pounds added to the drivers BIK charge.
I wonder if a pending election may have had impact on this decision? 😊
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