HMRC issues update on double cab pick-up tax rules

HM Revenue & Customs (HMRC) has issued fresh guidance on how double cab pick-up trucks will be taxed, confirming a major shift in their classification.  

From April 2025, most models will no longer be treated as vans for tax purposes but will instead fall under the company car category, bringing financial implications for businesses that use them. 

This update refines previous announcements, altering the definition of what qualifies as a van and potentially expanding the number of vehicles affected. 

Historically, double cab pick-ups benefited from being taxed as vans, which offered lower Benefit-in-Kind (BIK) rates and more generous capital allowances.  

However, HMRC’s revised position means that from: 

• 6 April 2025 – The new classification applies for Income Tax 

• 1 April 2025 – It takes effect for Corporation Tax 

This change influences BIK calculations, capital allowances, and how businesses claim tax deductions on these vehicles. 

Clarifying the definition of what counts as a double cab pick-up 

In its latest update, HMRC has outlined specific characteristics that determine whether a vehicle is now subject to company car tax: 

• The vehicle must have four doors, but these doors do not need to open independently. 

• Two-door models generally continue to be classed as vans. 

This means that extended cab, super cab, king cab, and extra cab variations are now caught by the new tax treatment. 

Already own or lease a double cab pick-up? Here’s what happens 

• If a business has already purchased, leased, or placed an order for a double cab pick-up before April 2025, the existing tax treatment will continue—but only up to the earliest of these events: 

• The vehicle is sold 

• The lease ends 

• 5 April 2029 

Capital allowances will also remain unchanged for those who buy before the new rules come into force. 

Next steps – How businesses should prepare for changes 

Companies that rely on double cab pick-ups need to assess the potential impact of these changes and take action. Key considerations include: 

• Reviewing vehicle policies to determine the financial consequences for both the business and employees. 

• Considering alternative vehicle options to minimise tax exposure. 

• Consulting tax professionals to ensure full understanding of how capital allowances and deductions will be affected. 

With the new rules coming into play in just over a year, businesses should start planning now to avoid unexpected tax liabilities.  

Need advice? Our tax experts are here to help. Contact us today.