Question to the HM Treasury:

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 .

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.