Autumn Budget 2024 Update: Important Tax Changes for Double Cab Pick-Ups

Hidden within the Autumn Budget 2024 were important tax changes for double cab pick-ups: from 6th April 2025. A popular choice of commercial vehicle for our clients, these vehicles will be classified as cars for capital allowances and Benefit-in-kind (BIK) purposes.

This change will have a notable impact for our clients and their employees.

Starting on 6th April 2025, double cab pick-ups will be treated as cars for capital allowances and personal tax purposes. This means that much of the cost of the truck will no longer be offset against compnay profits for Corporation Tax purposes. In addition, currently, double cab pick-ups do not give rise to a taxable benefit where private use is insignificant. However, under the new classification as a car, a taxable benefit will arise if the vehicle is available for any level of private use, regardless of how minimal it may be.

Our advice therefore is if you are thinking of acquiring a double cab pick-up, ensure you have done so before April 2025. As the company will continue to benefit from the existing tax treatment.

Transitional BIK arrangements will allow employers who have purchased, leased, or ordered a double cab pick-up before this date to continue with the current tax treatment. This treatment will apply until the vehicle is disposed of the lease expires, or until 5th April 2029—whichever comes first.

As always if you have questions about how these changes may affect you or your business feel free to reach out to your partner for guidance on the best approach to managing these upcoming tax adjustments.