LEASING brokers retailing lifestyle double cab pick ups can expect a rapid decline in demand following new tax rules announced by HMRC.
From 01 July 2024 double cabs over 1 tonne will no longer be classified as vans for tax purposes but will be considered cars under benefit in kind rules.
With most double cabs having CO2 emissions in the 37% tax band, the effect will be a significant upswing in benefit in kind tax payable.
The only electric double cab currently available is from Maxus.
“After rumblings for some time, there has been a decision around double cab pick-ups and BiK. I am sure this will have some big impacts on the market. As always members are encouraged to get in touch."
Under the HMRC tax rules to July 2024, so long as you chose a pick-up with a payload of at least 1,000kg it classified this as a Light Commercial Vehicle, which meant that it attracted a lower BiK for personal use and if you were VAT-registered you could reclaim some of the VAT.
A two-door pick up has always been classed as LCV-only because it is more suitable just as a working vehicle.
The tax changes will likely see OEMs deciding to phase out their high-spec luxury double cabs as customer demand weakens.
For broker customers there’s no need for immediate panic. HMRC has a transitional arrangement until 5 April 2028.
Check out the transitional arrangements for double cabs
Here’s the explanation of the new rules on GOV.UK.
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Russell Hayes’ early career was 14 years of motoring journalism in print (for What Car?), television (for Top Gear), as well as online. Since 2007 he has authored 11 motoring history books on subjects including TVR, the Earls Court Motor Show, the Volkswagen Golf and the original Aston Martin V8 – see Russell Hayes on Amazon. However, he’s not forgotten how to be a motoring journalist and now writes for UK consumer motoring sites and an American classic car magazine – not to mention Broker News. When he’s not writing, Russell can be found in the cinema or planning his next travel adventure.
