Welcome to our final newsletter for 2024 aiming to bring you the latest in financial news and updates. This month we focus on the following topics.
First our lead story:
DOUBLE-CAB PICKUPS TO BE CLASSED AS CARS UNDER NEW HMRC POLICY: HMRC has confirmed that double-cab pickups will be taxed as cars from April 2025, following the latest Budget announcement.
This change, outlined in the Budget Red Book, reverses earlier decisions that caused uncertainty over the taxation of these vehicles.
Previously, HMRC had briefly classified double-cab pickups as cars in early 2024, only to revert to van status a week later. The reclassification now stems from the 2020 Court of Appeal case, Payne & Ors (Coca-Cola) vs R & C Commrs, which questioned the tax treatment of vehicles with a payload of one tonne or more.
Under the new rules, double-cab pickups will be treated as cars for corporation tax from 1 April 2025 and for income tax from 6 April 2025. The change will affect capital allowances, benefits in kind and certain business deductions. However, transitional arrangements will allow employers who purchase, lease or order these vehicles before the cut-off date to continue benefiting from the previous tax treatment until 2029.
HMRC has indicated that this ruling is aimed at ensuring consistency in tax treatment across similar vehicles.
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And other stories:
TUITION FEES SET TO RISE FOR FIRST TIME IN EIGHT YEARS: The Education Secretary, Bridget Phillipson, has announced an increase in tuition fees from £9,250 to £9,535 per year starting in September 2025.
GOVERNMENT CHAMPIONS HEALTH BENEFITS OF WORK IN NEW INITIATIVE: The WorkWell programme aims to support health through work.
BANK OF ENGLAND CUTS INTEREST RATES TO 4.75%: Monetary Policy Committee (MPC) reduces rates amid signs of easing inflation. This cut follows a previous hold, with the MPC voting to decrease rates from 5% to 4.75%.
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