Asked by: Margaret Mullane (Labour - Dagenham and Rainham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will postpone changes to the taxation of double-cab pick-up trucks for 12 months.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Following a judgement by the Court of Appeal, Double Cab Pick Ups must be treated as cars, rather than goods vehicles, for certain tax purposes, based on their primary suitability.
The government has no plans to legislate to postpone the change and treat DCPUs as goods vehicles, as this would depart from the broader principles underpinning the Court of Appeal’s judgement, and be a significant tax break worth hundreds of millions per year.
Asked by: Margaret Mullane (Labour - Dagenham and Rainham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will extend the VAT exemption afforded to adapted motor vehicles for people with disabilities to London’s Black Cabs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to ensuring support is there for the most vulnerable people in our society. Certain products designed solely for use by a disabled person can qualify for a zero rate of VAT.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £171 billion in 2024/25. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Another key consideration when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers in the form of lower prices. Evidence suggests that businesses only partially pass on any savings from lower VAT rates and so in some cases, reliefs do not represent good value for money.