Budget- pick-ups, the devil is in the details

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5.91 Treatment of double cab pick up vehicles – Following a Court of Appeal
judgement, the government will treat double cab pick-up vehicles (DCPUs) with
a payload of one tonne or more as cars for certain tax purposes. From 1 April 2025
for Corporation Tax, and 6 April 2025 for income tax, DCPUs will be treated as cars
for the purposes of capital allowances, benefits in kind, and some deductions from
business profits. The existing capital allowances treatment will apply to those who
purchase DCPUs before April 2025. Transitional benefit in kind arrangements will
apply for employers that have purchased, leased, or ordered a DCPU before 6 April
2025. They will be able to use the previous treatment, until the earlier of disposal,
lease expiry, or 5 April 2029.

 

[Essexsussex]

At least they are allowing the previous treatment for a reasonable period.
More generous than I would have expected!

 

[Malxwal]

As a private owner of a pickup purchased in 2023, does this translate as I continue to pay the existing rate for the remainder of my ownership ?

 

[Jh1986]

As a private owner of a pickup purchased in 2023, does this translate as I continue to pay the existing rate for the remainder of my ownership ?

So long as you only remain the owner until 5th April 2029. If it's leased and it expires before then, then carry on as you are.

 

[slider]

At least they are allowing the previous treatment for a reasonable period.
More generous than I would have expected!

Not great if your a manufacturer/importer with a massive stock of double cabs

 

[Malxwal]

Not great if your a manufacturer/importer with a massive stock of double cabs

Labour, stimulating business

 

[Essexsussex]

Not great if your a manufacturer/importer with a massive stock of double cabs

V true

 

[Skietindiekop]

It was only earlier this year that the idea was cancelled from last year’s budget I believe

 

[Mickeydredd]

Not great if your a manufacturer/importer with a massive stock of double cabs

Toyota should be fine then…..

 

[Apthorpe]

Not great if your a manufacturer/importer with a massive stock of double cabs

Very true, but this country won't need as many double cabs because the productive economy will be smaller.

 

[VSS]

Very true, but this country won't need as many double cabs because the productive economy will be smaller.

As far as I can see, most of the people who drive DCPUs don't need them.

 

[Malxwal]

As far as I can see, most of the people who drive DCPUs don't need them.

So therefore they should pay more ? True left wing thought process

 

[VSS]

So therefore they should pay more ? True left wing thought process

Did I say that? No.
Never given it much thought, to be honest, but one can't help noticing that there's an awful lot of commercial type 4x4 vehicles being used as nothing more than an urban car.

 

[Malxwal]

Did I say that? No.
Never given it much thought, to be honest, but one can't help noticing that there's an awful lot of commercial type 4x4 vehicles being used as nothing more than an urban car.

I pondered buying a non pickup 4x4, but the prospect of stinking carcass and dogs contaminating the human quarters was immediately raised by SWMBO. I'm a private buyer and user. I understand I benefit from the commercial tax bracket, and if pick ups are to be treated as cars in private ownership, then so be it. As long as they're treated fairly and not as a luxury item. They're hardly Range Rovers (they're better on fuel to be fair).

 

[slider]

Did I say that? No.
Never given it much thought, to be honest, but one can't help noticing that there's an awful lot of commercial type 4x4 vehicles being used as nothing more than an urban car.

There are a multitude of reasons for owning a double cab.

For us, now retired townies, a double cab is the idea vehicle. Stops ticks crawling over the passenger area when stalking and absolutely the best machine for towing the caravan.

Families with multiple dogs or just a heap of "kids stuff" to haul around, we are in the heart of mountain biking country and many use them to transport bikes and all there gear ( especially beneficial once mucky). I could go on...

 

[Essexsussex]

There are a multitude of reasons for owning a double cab.

For us, now retired townies, a double cab is the idea vehicle. Stops ticks crawling over the passenger area when stalking and absolutely the best machine for towing the caravan.

Families with multiple dogs or just a heap of "kids stuff" to haul around, we are in the heart of mountain biking country and many use them to transport bikes and all there gear ( especially beneficial once mucky). I could go on...

I think the point is though, why should they be treated differently to normal company cars if just being used as company cars to avoid paying the normal PIK etc tax.

As with everything there will be some people unfairly caught but I know (as I did this with a commercial freelander years ago) that people have them so as to not pay PIK tax.

Not saying right or wrong but this is what the thought process will be.

 

[8x57]

I don't disagree that they can be a very useful vehicle, I would love one and would absolutely put it to proper use. However many of the ones around where I live are owned by posers who would never dream of putting anything dirty in the tub, if that were at all possible because most are fitted with ridiculous over size tyres and are jacked up so that you almost need a ladder to climb into the bed. As for going off tarmac, most think they are off-roading if they use the over spill grass car park at the local boating lake.

 

[VSS]

I don't disagree that they can be a very useful vehicle, I would love one and would absolutely put it to proper use. However many of the ones around where I live are owned by posers who would never dream of putting anything dirty in the tub, if that were at all possible because most are fitted with ridiculous over size tyres and are jacked up so that you almost need a ladder to climb into the bed. As for going off tarmac, most think they are off-roading if they use the over spill grass car park at the local boating lake.

That's the ones I was referring to.

I remember some years ago, someone pulled out of a side road straight into the side of our Discovery that we had as a general purpose farm / family vehicle at the time. The damage assessment and repairs took some time, so the insurance company arranged for a courtesy car to be delivered to us for use in the meantime. We told them it would have to be a 4x4.
The delivery driver, after negotiating our farm access track (a steep unmade forestry track) said he could see now why we'd asked for a 4x4. Apparently the last person to be loaned the vehicle had also insisted that they needed a 4x4. They lived in Manchester, and the only thing they used the vehicle for was taking their kids 3/4 of a mile to school.

 

[Heym SR20]

I really don’t understand why the general public should subsidise cheap motoring for some, whilst the rest of us pay through the nose.

If you are legitimately using a vehicle as part of a business then its a business expense, just like any other bit of kit that is used in a business.

But running high performance electric vehicles and pickups through a business, but are used for every day personal transport is just plain wrong.

 

[25 Sharps]

At least they are allowing the previous treatment for a reasonable period.
More generous than I would have expected!

Its basically exactly what the tories proposed and then made a u-turn on - ordered my Amarok (read tarted up Ranger) Yesterday, though I had the quote sorted before the budget!!