Double Cab Pickups Tax Update 2025

There are some important changes taking place for the tax treatment of double cab picks ups from 6 April 25. You may already be aware of this issue, as there has been a lot in the press. Here are the key facts about what is happening and how it might affect you.

For 2025-26 onwards a double cab pickup will be treated a car rather than a van for certain types of tax.

If you buy or lease a double cab pickup from 6 April 25:

  • Employment benefits in kind will be based on CO2 emissions and could be up to 37% of the vehicle list price for 2025-26.
  • Any element of private use at all will result in a benefit in kind.
  • Capital allowances will be written down allowances only based on CO2 emissions, so for standard petrol or diesel vehicles only 6% per year can be claimed against tax.
  • Operating lease payments will be restricted to 85% based on CO2 emissions.

For existing vehicles or where you buy, lease or order a double cab pickup on or before 5 April 25 with payment made before 1 October 25:

  • It will still be treated as a van for benefits in kind until 5 April 2029, or the point you get rid of it, or the lease expires, whichever is earlier. The van benefit in kind is based on an annual amount set by HMRC.
  • A small amount of private use of a company van is allowable without generating a benefit in kind.
  • The existing capital allowance treatment for vans will apply, allowing 100% Annual Investment Allowance so that the full cost can be claimed against tax in the year of purchase.

There is no change to the VAT treatment for double cab pickups. A goods vehicle with a payload over 1 tonne is classified as a van and VAT can be claimed according to the existing rules.

What do you need to do now?

If you have plans for a new business double cab pickup, you need to make sure it is purchased, leased or ordered before 6 April 25 to benefit from the existing tax rules for vans. If this isn’t possible you may need to consider owning the vehicle personally and claiming business mileage or purchasing an alternative company vehicle that can be classed as a van.

We are happy to provide further information and guidance on this topic so please get in touch with the Tax Team at consult@mitchellsaccountants.co.uk or calling 01246 274121.