GOVERNMENT proposals to amend its VAT policy on commercial vehicles, potentially saving fleet operators thousands of pounds in tax bills, could see the pick-up market rocket. In September of this year, the UK Government is proposing to move in line with a European Commission directive to alter the definition on what makes a pick-up a commercial vehicle and not a car.

Currently, any double-cab with rear windows and a second row of seats is classed as a car, and VAT-registered operators cannot reclaim the VAT on the vehicle as they can with vans and single cab pick-ups.

Manufacturers say this has limited the double-cab market in the main to leisure users, looking for versatile off-road vehicles with high load space. But if the Customs & Excise changes become legislation in September, any pick-up with a payload of 1,000kg or more will be classed as a commercial vehicle, irrespective of whether it has a double cab or not.

This means that a whole new market could open up for the vehicles, and many manufacturers have realised that this could leave them out in the cold.

For instance Ford's new Ranger Double Cab and Super Cab, both with rear seats, may not qualify for the VAT exemption as their payloads fall just under the one-tonne threshold. Ford is hoping to convince Customs & Excise that driver weight should be taken into consideration, taking the 'gross' payload of its Ranger pick-ups to more than 1,000kg.