Double cab pick ups – reminder of changes from April 2025

From April 2025 significant changes were introduced that impacted the income tax and corporation treatment of double cab pick-up vehicles. These changes are summarised below.

Capital allowances

Prior to April 2025, all double cab pick-ups with a payload of over one tonne are classed as commercial vehicles. This means that 100% tax relief was available to the business in the year of purchase in the form of the Annual Investment Allowance or Full Expensing. For all double cabs purchased from April 2025 onwards, these vehicles will be classed as cars for capital allowances, irrespective of their payload. This means 100% tax relief in the year of purchase is no longer be available. Instead, a writing down allowance of 6% or 18% pa will apply. Double cab-picks ups purchased pre-April 2025 will still be classed as a commercial vehicle for capital allowance purposes if the payload is over 1 tonne.

Benefits in kind

All double cab pick-ups purchased after 6 April 2025 onwards will be classed as cars for benefit in kind purposes. This has likely lead to a much higher benefit in kind charge and income tax bill for employees/directors, as the benefit in kind charge on a commercial vehicle is typically lower than it is for a car.

For pre-6 April 2025 purchases. The more favourable commercial vehicle benefit in kind rate will apply until the earlier of:

• The date of disposal
• Lease expiry date
• 5 April 2029

If you are looking to purchase a double cab-pick up and are wondering what the full tax impact of the purchase will be under the new rules that are now in place, please feel free to get in touch and ask for one of the tax team or contact Joe Wilson on 023 8046 1237 or email Joe Wilson.