Motor Vehicles: Taxation
The question
To ask the Chancellor of the Exchequer, if she will introduce a three month extension to the transition period for capital allowance rules for Double Cab Pick Ups.
Answered by James Murray
Following recent case law from 2020, Double Cab Pick Ups with a payload of one tonne or more must be treated as cars for capital allowances purposes, in line with the Court of Appeal's judgement on the primary suitability of such vehicles.
The government recognised that this change will affect businesses, who need certainty and predictability. Which is why HMRC has put in place substantial transitional arrangements. These ensure that current owners, and those who purchased Double Cab Pick Ups before 1 April 2025 (for Corporation Tax) and 6 April 2025 for (Income Tax), and incur expenditure before 1 October 2025, are not impacted.
The purpose of the transition period was to provide certainty and allows businesses time to adapt. The government gave just under a year’s notice of the October 2025 deadline.
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