Double Cab Pickups - car or van? It depends.... (and it's changed!)

What is a Double cab pickup?

It is a vehicle that has a front passenger cab with a second row of seats to fit around 4 passengers plus the driver. It has 4 separate doors, and an uncovered pickup area at the rear.

These have been a popular purchase for businesses to use as company vehicles. They are big enough to use as a work vehicle yet also suitable for day to day personal/family use.

And…as long as the model chosen had a payload of at least 1 Tonne, it could be treated as a commercial vehicle for company tax purposes, making it a tax efficient option as well as a practical one.

Earlier this year there was a decision to change the tax treatment of these vehicles by HMRC that was very quickly overturned.

However, in the October budget, it has been reviewed again and from April 2025 these vehicles will now be taxed as cars.

This means: 

• Lower Capital allowances- No first year allowances or Annual Investment Allowances.

• Benefit in Kind value will be higher - The benefit will be based on the value of the vehicle, its fuel and its emissions, rather than the flat rate for commercial vehicles. This will cost the company more in Class 1A National Insurance, and the user of the vehicle will have a higher personal tax bill.

In short, it will become much less tax efficient to have a double cab pickup as a company vehicle. 

Any purchase of double cab pickups before 1 April 2025 will still be treated under the old rules..

For Benefit in Kind purposes,  there will be a transitional arrangement meaning a double cab pick up purchased prior to 1st April 2025 can be treated as a commercial vehicle until the earlier of - its disposal, the lease expiry or 5th April 2029.

So… if you were thinking of getting a double cap pickup, it may be worth doing so before 1st April 2025.