Double Cab Pickup Tax Changes: Everything You Need to Know
The UK Government’s Autumn Budget outlined key changes that will come into effect from April 2025.
- From April 2025, double cab pickups will be classified as cars instead of commercial vehicles.
- This will have implications for capital allowances and Benefit-in-Kind (BIK).
- If you buy a double cab pickup before April 2025, you can benefit from current capital allowance and BIK rules.
On 30th October, the first Autumn Budget was delivered under the new Labour Government. Chancellor of the Exchequer, Rachel Reeves, outlined key changes to tax, spending, and benefits.
One of the most notable changes announced was the re-classification of double cab pickups.
We’ve broken down everything you need to know so you’re up to speed on the changes that will come into effect next year.
How are the tax rules for double cab pickups changing?
Currently double cab pickups over one tonne are classified as commercial vehicles. But it was announced in the Autumn Budget that this will change from 6th April 2025 when they will be classified as cars for tax purposes.
What will change when this comes into effect?
You can expect two main changes when the reclassification comes into effect:
1. Higher Benefit-in-Kind (BIK) rates
The changes will see double cab pickups brought in line with car tax rates. This will result in higher BIK rates if you own a double cab and use it for personal travel
2. Reduced capital allowances
Currently businesses can claim 100% tax relief on new double cab pickups in the first year. This is under the Annual Investment Allowance or full expensing rules.
From April 2025, double cab pickups will be eligible for capital allowances at 18% on a writing-down basis.
What will happen between now and April 2025?
If you buy a new double cab pickup before April 2025, you can take advantage of the current capital allowance and BIK rules.
The existing BIK rules will apply until you sell the vehicle, the lease ends, or April 2029.
Why is the UK Government changing the rules around double cab pickups?
As double cab pickups are similar to passenger cars, this change will make tax rules more consistent.
Back in 2020, Coca-Cola was involved in a long-running court case with HMRC. The case was around whether three commercial vehicles should be classed as cars or vans for tax purposes.
The change was originally set to come into force from 1st July this year. However, just a week later it was announced that the policy had been scrapped.
Explore double cab pickups at Vansdirect
At Vansdirect, we offer a wide range of pickups including popular models like the Ford Ranger and Volkswagen Amarok. As well as the Toyota Hilux and Isuzu D-Max.
All are renowned for being a reliable workhorse with the ability to carry both passengers and cargo.
Get in touch with us today to discover the best new van leasing deal on double cab pickups and our flexible van finance options.
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