Double-cab pickups to be taxed as cars

Following a series of u-turns, the Autumn Budget announced that from 1 April 2025 for corporation tax and 6 April 2025 for income tax, double-cab pickups will be treated as cars rather than vans for the purpose of benefits in kind and capital alowances.

The decision was made following the court of appeal decision in Payne & Ors (Coca-Cola) vs R & C Commrs (2020) and will apply to vehicles with a payload of one tonne or more (if less than a tonne, they are being treated as cars aleady).

However, vehicles that were acquired or ordered before 6 April 2025 can be treated as vans untilthe earlier of disposal, lease expiry, or 5 April 2029.

Tip – If you are considering buying a double cab pick-up vehicle with a payload of 1 tonne or more, acquiring or ordering it before 6 April 2025 could ensure it attracts the more beneficial tax treatment for vans.

If you have any questions about how this could affect you or your business, please get in touch.