Important Tax Changes for Double Cab Pick-Ups (DCPU)

The Autumn Budget 2024 announced that double cab pick-up trucks with a payload capacity of at least one tonne purchased after 5 April 2025 will be treated as passenger cars for tax purposes.

The key changes will affect:

• Capital allowances

DCPU will no longer benefit from the tax treatment traditionally given to vans/ light commercial vehicles.

• Benefit-in-Kind (BIK) taxation

The BIK is to be aligned with cars and will be calculated as a percentage of the vehicle’s retail price, based on its CO₂ emissions. Most double cab pick-ups have high CO₂ emissions, so they will attract the highest tax band of 37%.

A taxable benefit will arise if the vehicle is available for any level of private use, regardless of how minimal it may be. The VAT treatment of DCPU will remain unchanged.

• Business profit deductions

DCPU will be subject to new deductions from business profits.

• Planning Ahead – Act Before April 2025

Businesses can retain the current, more favourable tax treatment by completing the purchase of a DCPU before 6 April 2025 as transitional benefit in kind arrangements will apply for the purchase, lease or order of a DCPU before 6 April 2025.  The previous treatment can be used until the earlier of disposal, lease expiry or 5 April 2029.

Single cab pick-ups are expected to remain as commercial vehicles