Important Tax Changes for Double-Cab Pickups

From April 2025, the tax classification for double-cab pickups is set to change significantly. Vehicles previously categorised as light commercial vehicles will be reclassified as passenger cars, bringing new tax implications.

This shift means double-cab pickups will no longer benefit from the preferential tax treatment associated with light commercial vehicles, such as lower tax rates. These changes are expected to have a notable financial impact on both businesses and individuals using double-cab pickups for work purposes.

What’s Changing?

Effective April 2025:

• Reclassification: Any double-cab pickup with a payload of one tonne or more will be treated as a passenger car.
• Benefit-in-Kind (BIK): Employees using these vehicles will face higher tax liabilities as they transition to passenger car BIK rates.
• Capital Allowances: Businesses will face reduced tax relief on these vehicles. Purchases made after April 2025 will follow passenger car rules for capital allowances, limiting the deductions available.
• Operating Costs: Deductions for business expenses related to these vehicles will also be restricted under the new classification.

Key Deadlines:

• Before April 2025: Double-cab pickups purchased or ordered will retain their current tax benefits.
• After April 2025: New purchases or orders will be subject to the passenger car tax rules.

Transitional Provisions

For vehicles purchased, ordered, or leased before April 2025, existing BIK tax treatment will remain until the lease ends, the vehicle is sold, or April 5, 2029, whichever comes first.