Treasury written question – answered at on 3 December 2024.
Helen Grant
Shadow Solicitor General
To ask the Chancellor of the exchequer, if she will make an assessment of the potential merits of reversing the changes to VAT on double cab pick-ups .
James Murray
The Exchequer Secretary
The VAT treatment of double cab pick-ups (DCPUs) has not changed. DCPUs are subject to the standard 20 per cent rate of VAT.
As announced at Autumn Budget 2024, following a Court of Appeal judgment, the Government will treat DCPUs with a payload of one tonne or more as cars for the purposes of Benefit in Kind and Capital Allowances taxation.
However, for VAT purposes, DCPUs with a payload of one tonne or more will continue to be classed as vans, meaning VAT-registered businesses will continue to be able to recover the VAT paid on them in line with normal VAT recovery rules. The definition of a motor car, and what does not constitute a car, for VAT purposes is set out in SI 1992/3122 – Value Added Tax (Cars) Order 1992.
Yes2 people think so
No1 person thinks not
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