If you use double cab pick-ups for your business, there’s a tax change coming you’ll want to be aware of.
From 1 April 2025 (for Corporation Tax) and 6 April 2025 (for Income Tax), double cab pick-ups with a payload of one tonne or more will no longer be classed as commercial vehicles – they’ll be treated as cars.
Meanwhile, single cab pickups will still be classed as commercial vehicles, so this change doesn’t apply to those.
So, what does this actually mean for your business?
Capital Allowances
If you’ve already bought, leased or ordered your double cab pick-up before April 2025, then good news – you can carry on using the current capital allowance rules.
That means:
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You may still be able to claim 100% tax relief in the first year using the Annual Investment Allowance or full expensing (for new vehicles).
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This tax treatment stays in place until you sell the vehicle, the lease ends, or 5 April 2029 – whichever comes first.
But if you’re buying a new double cab pick-up after 6 April 2025, then it’ll be treated as a car for tax purposes.
That means you won’t be able to:
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Claim Annual Investment Allowance
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Use the Super-Deduction
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Get full expensing
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Claim the 50% first-year allowance
Benefit in Kind (BIK)
If your team uses a double cab pick-up for both business and personal journeys, this change could also increase their Benefit in Kind (BIK) tax bills.
Why? Because once these vehicles are reclassified as cars, the tax on personal use could be a lot higher.
So, what should you do?
Now’s a good time to:
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Review your current fleet and how it’s used
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Consider alternative vehicles that are more tax efficient
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If you lease a double cab pick-up and the lease runs past April 2029, make sure you’re aware that it will be taxed as a car from that point onwards
Why has this changed?
According to HMRC, double cab pick-ups are just as suitable for carrying passengers as they are for carrying goods – so they’re not clearly commercial vehicles. Because of this, they’ll now be treated more like cars when it comes to capital allowances, BIK, and tax deductions.
Need some help figuring it all out?
If you’re wondering how this affects your business or what your next move should be, we’ve got you covered.
✅ Complete our quick questionnaire and book a discovery call with us – we’ll help you make sense of it all and plan ahead with confidence.
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