Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the reclassification of double cab pick ups on (a) small businesses and (b) family farms in Lancashire.

Double Cab Pick Up vehicles (DCPUs) have in the past been treated as goods vehicles for tax purposes, rather than cars. 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 transitional arrangements put in place mean that this will not affect the capital allowances treatment of any business that already owns a DCPU, or that purchases one before April 2025; and businesses that purchase a DCPU after this date will still be able to deduct the cost from their taxable profits at 18% or 6% per year. Under the transitional arrangements for Benefit-in-Kind treatment, anyone who has accessed a DCPU before 6 April 2025 will not be impacted until the sooner of disposal of the vehicle, 5 April 2029 or when their lease expires.

In addition, there are alternatives to DCPUs (such as Single Cab Pick Ups, or 4x4 vans) that are still treated as goods vehicles.