What HMRC’s Recent Change in Legislation Means for Your Double Cab Pick-Up
HMRC has introduced a change in the legislature regarding the tax treatment of double cab pick-ups. Vehicles purchased from April 2025 will be classified as company cars for benefit in kind, capital allowances, and some deductions from business profits and subject to increased tax rates.
What are the new changes and how does this effect double cab pick-ups?
Benefit in Kind (BIK):
HMRC has updated its legislation regarding the classification of double cab pick-ups, with regards to BIK, to be considered as cars as opposed to commercial vehicles from 6th April 2025.
Double cab pick-ups will be moving away from the previously set flat rate of £3,960 and instead will be subjected to the car BIK rate, which can vary between 2% and 37% based on the vehicle’s CO2 emissions.
From 6th April 2025, electric double cab pick-ups with over 1-tonne payload will be subject to company car BIK rates (3%), increasing by 1% annually until 2028.
Capital Allowances (CA):
From 1st April 2025, double cab pick-ups will also be classified as company cars with regard to CA.
Double cab pick-ups will be moving away from the previous classification as ‘plant and machinery’ for CA purposes and instead will be subjected to the company car rates, which can vary between 6%, 18% and 100%, based on the vehicle’s CO2 emissions.
Will there be a transitional period before the cut-off date?
If you are a current owner or looking to purchase, lease, or order a double cab pick-up before 6th April 2025, HMRC has instated a transitional period before the cut-of date, whereby you will have the existing treatment until the earlier of disposal, lease expiry, or 5th April 2029.
Order your Isuzu Double Cab before 6th April 2025 to continue to enjoy lower tax rates for trucks until 2029. Transitional arrangements issued by HMRC ensure double cab trucks ordered before 6th April 2025 will be taxed as a benefit in kind at van rates rather that the more expensive car rates until the end of the lease or 5th April 2029. If you require further information please give us a call on 01205 725700.