Double Cab Pickup Tax Changes: 2025 Rules Explained

For years, double cab pickup trucks have been a tax-efficient choice for business owners and company car users in the UK. But starting 6 April 2025, HMRC is changing how these vehicles are treated for Benefit in Kind (BIK) and capital allowance purposes. These updates could significantly alter the tax landscape for pickups used both for work and privately.

Here’s what’s changing, why it matters, and what to expect if you’re planning to purchase or already operate a double cab pickup.

What Are the Recent Changes in Benefit in Kind Legislation?

From 6 April 2025, HMRC will reclassify most double cab pickup trucks as cars for tax purposes, not vans.

This directly affects how Benefit in Kind is calculated for employees using them personally. Until now, double cabs with a payload of over 1 tonne were treated as vans, meaning they attracted a flat-rate BIK charge (currently £3,960 per year for 2024/25).

Under the new rules, they’ll be treated like company cars, with BIK based on:

• The vehicle’s P11D value

• Its CO2 emissions

• The employee’s tax band

This could mean a sharp rise in tax for drivers of company-owned pickups.

How Do the Changes Affect Capital Allowances?

Currently, businesses can claim capital allowances on double cab pickups as if they were commercial vehicles — meaning they can often benefit from Annual Investment Allowance (AIA) or even full expensing, depending on eligibility.

From April 2025, double cab pickups will be classed as cars, meaning:

• No more full expensing

• Limited to the main rate pool (18%) or special rate pool (6%), depending on CO2 emissions

• Less upfront tax relief in the year of purchase

This makes them less attractive as business assets, especially for cashflow-conscious buyers.

Will There Be a Transitional Period?

Yes. HMRC has confirmed a transitional period up to 5 April 2025. Any double cab pickups purchased, leased or ordered before this date can continue to be treated as vans for tax purposes — both for Benefit in Kind and capital allowances — for as long as they’re in use.

However, any vehicles first registered or delivered on or after 6 April 2025 will fall under the new car classification unless they meet narrow exemptions.

Why Have These Changes Been Made?

HMRC has updated its stance to ensure consistency with existing legislation and to reflect how double cab pickups are often used — many are equipped with luxury interiors, rear seating and features that make them more like passenger vehicles than commercial vans.

According to HMRC, the change brings the tax treatment in line with the spirit of the rules, rather than allowing vehicles that serve as family or lifestyle transport to benefit from van tax rules.

It’s a move aimed at closing a perceived tax loophole — though it’s controversial among small business owners and rural contractors who rely on pickups for both work and personal use.

Will Single Cab or Extended Cab Pick-Ups Be Affected?

Not all pickups will be affected. Single cab and extended cab pickups designed strictly for goods transport — without full rear seating — may still qualify as vans.

These vehicles are more clearly commercial in design and purpose, so HMRC’s revised position mainly targets double cabs, which often straddle the line between work vehicle and family car.

If in doubt, check the payload and seating arrangement. If it’s clearly not dual-purpose, it may continue to be classed as a van.

What Happens If You Purchase a Double Cab After the Transitional Period?

If you buy or lease a double cab pickup on or after 6 April 2025, it will be treated as a car for:

• Benefit in Kind tax

• Capital allowances

• Corporation tax deductions

This means:

• You’ll pay BIK based on emissions and value

• You’ll only get tax relief on the asset over time

• The vehicle may be excluded from full expensing

It could also affect decisions about salary sacrifice or company vehicle schemes.

Will the Changes Affect VAT Reclaim on Double Cab Pickups?

No — VAT treatment is not changing (as of now).

You can still reclaim VAT in full on a pickup if it’s used strictly for business and meets HMRC’s commercial vehicle criteria (typically over 1 tonne payload, not designed for private use). If there’s any personal use, VAT reclaim may be restricted, or you may need to apply output tax on private use.

VAT remains a separate issue from BIK and capital allowances, but make sure your use case stacks up if claiming full input VAT.

Final Thoughts

Double cab pickups have long been a popular choice thanks to their tax efficiency — but from April 2025, the rules are changing. For most new purchases, they’ll no longer qualify as vans, meaning higher Benefit in Kind charges and reduced tax relief on capital costs.

If you’re planning to buy one, consider acting before the 5 April 2025 deadline. For businesses relying on these vehicles for work and lifestyle, now’s the time to revisit fleet strategy and speak to an accountant to understand the cost implications.