Double cab pick-up tax guide for 2025
Starting April 2025, double cab pick-up trucks will be classified as company cars for tax purposes. Previously seen as commercial vehicles with more favourable rates, these pick-ups will now have their costs determined by CO2 emissions. This change is expected to affect nearly every model, making it essential for drivers and businesses to understand the financial implications.
This guide explores the key details of the tax changes, their impact on costs and allowances, and how they will affect existing and future double-cab pick-ups orders.
What is the double-cab pick-up tax hike?
Double-cab pick-ups will no longer benefit from commercial vehicle tax rates. Instead, they will be treated as company cars, subject to higher Benefit-in-Kind (BIK) rates because of their emissions. This change is part of the UK government’s initiative to create a consistent tax system across all vehicle types while encouraging a shift toward greener transport.
Key changes and dates
The changes to double-cab pick-up taxation introduce several key updates.
- The new rules take effect from 6th April 2025.
- For vehicles registered before this date, transitional provisions may offer relief, such as phased-in rates or exemptions, depending on specific conditions.
It’s important for businesses and drivers to understand how these changes will impact costs and plan accordingly. For more information on how changes could affect business leasing, visit our guide on the tax implications of business car leasing.
Impact on capital allowances and business deductions
The changes will impact how businesses claim capital allowances. Once eligible for full or accelerated allowances under commercial vehicle rules, double-cab pick-ups will now follow car tax regulations with stricter limits on deductions.
- Capital Allowances: New rules cap first-year allowances at 18%, with lower rates for higher-emission vehicles.
- Operating Costs: Businesses will face reduced tax relief on leasing or purchasing expenses.
Transitional arrangements for existing vehicles
To help the transition, the government has introduced measures for vehicles registered before April 2025. These include gradually phasing in the new Benefit-in-Kind (BIK) rates over several years to lessen the immediate impact. Understanding these provisions is crucial for businesses to plan effectively and manage future costs.
What pick-up models does the tax change affect?
A double-cab pick-up has two rows of seats and a separate cargo area, making it a popular choice for businesses who needs space and versatility. It can offer seating for up to five people and the utility of a truck bed for carrying goods.
The tax changes will impact a range of double-cab pick-ups popular with personal and business customers. Affected models include the Ford Ranger, Toyota Hilux, and Isuzu D-Max.
Find out more about pick-up truck costs with Synergy
Understanding the new tax rules for double-cab pick-ups doesn’t have to be complicated. Synergy is here to help, whether you’re looking to secure a double-cab before the tax changes or explore your leasing options.
We’re proud to offer award-winning service. We were recognized with the Feefo 10 Years of Excellence Award and named Broker of the Year 2024 by Broker News.
If you’re ready to explore your pick-up leasing options, visit our top deals or contact us today for personalised support.
