The government was hoping to use its success in the Court of Appeal rulings that most multi-purpose vehicles, such as DCPUs, are cars in Payne & Ors (Coca-Cola) v R & C Commrs (2020) (BTC19), to attack a tax loophole which allows these vehicles to avoid company car taxation and be taxed as vans. Sales of DCPUs have steadily risen in line with rates of company car tax as small business owners and eligible drivers have sought out ways of reducing their tax liability. At the same time manufacturers have provided versions with high levels of comfort, specfication , performance and consequent emissions that now seem to take up lots of space in the supermarket car park. There is no easy mechanism for HMRC to base tax treatment on how these vehicles are used, so it was forced to have a go at basing BIK on the construction of the vehicle, and the fact that some area could be used for passengers. There must have been an immediate backlash to cause this U-turn, and perhaps it is no co-incidence that the prime minister is about to appear at the National Farmers’ Union annual conference today (20th February) to try and win back support for the Conservatives by unveiling £427m of grant funding for agricultural technology and productivity schemes. Farmers are also key users of DCPUs .
