Double cab pick-ups to be taxed as cars

From 1st April 2025 for corporation tax, and 5th April 2025 for income tax, double-cab pick-ups will be treated as cars for capital allowances and Benefits in Kind purposes. 

Existing capital allowances will apply to the purchase of double cab pick-ups until April 2025, and thereafter will be treated as cars for capital allowance purposes. 

Transitional Benefit in Kind arrangements will apply to double cab pick-ups purchased, leased and ordered before April 2025, meaning old rules will apply and will be able to be used until whichever is earlier: disposal, lease expiry, or 5th April 2029. 

In Febraury 2024, the rules around double cab* pick ups were going to change, resulting in most being classified as cars. However, just a week later HMRC reversed the decision and said there would be no changes from 1st July 2024. 

The changes mean that multi-purpose vehicles with a payload of one ton or more** and those with a second row of seats, will be classed as cars for Benefit in Kind purposes.

Benefit in Kind legislation requires that a van is a ‘goods vehicle’ – “a vehicle of a construction primarily suited for the conveyance of goods or burden”. 

Those vehicles with less than a ton are already being treated as cars. 

How TaxAssist Accountant can help 

If you have a double cab pick-up, or another vehicle with two rows of seats, or you’ve ordered one that is yet to be delivered, speak to our tax experts who can help you with the implications of changing legislation. 

 

* A double cab pick-up normally has a front passenger cab with a second row of seats, capable of seating five people (one driver and four passengers). It has four doors capable of being opened independently and an uncovered pickup area behind the passenger cab.  

** Payload means gross vehicle weight less unoccupied kerb weight.  

Date published 31 Oct 2024

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