From 6 April 2025, HMRC is changing the way Double Cab Pickup trucks (DCPUs) are treated for tax purposes in the UK. These updates will have a major impact on businesses and employees using these vehicles — especially when it comes to Benefit-in-Kind (BIK) tax and capital allowances.
Let’s break it down.
What’s Changing?
Starting 6 April 2025, most Double Cab Pickups will be reclassified as cars, not vans, for tax purposes. This overturns the previous position where DCPUs were treated as vans — as long as they had a payload of at least 1 tonne.
- BIK will be calculated using car rates, based on CO₂ emissions and list price
- Capital Allowances will be treated like cars, meaning no more full Annual Investment Allowance (AIA)
- VAT treatment remains unchanged VAT can still be reclaimed if payload exceeds 1 tonne and the vehicle is used solely for business
How This Affects Your Tax Bill
Previously (Treated as Vans):
- Flat-rate BIK – around £3,960 per year
- Full capital allowances claimable
- Lower overall tax liability
Now (Treated as Cars):
- BIK based on CO₂ emissions + list price
- Example:
A £60,000 pickup with 200g/km CO₂ BIK of – £22,200
– A 40% taxpayer could owe £8,880+ in tax - Capital allowances follow car rules – much slower tax relief
This is a significant tax increase for many employees and business owners.
Transitional Relief (Act Fast)
HMRC has introduced transitional arrangements if you already own or lease a DCPU:
If the vehicle was:
- Purchased
- Leased
- Ordered (under a binding contract)
before 6 April 2025
You can still treat it as a van until 5 April 2029, or until the vehicle is sold or the lease ends whichever is sooner.
Why the Change?
This stems from the Coca-Cola Supreme Court case, which found that DCPUs were not designed primarily for goods transport — making them more like cars than vans under the letter of the law.
Final Thoughts
The reclassification of double cab pickups represents a significant shift in vehicle taxation. For many, this will mean higher tax bills, and less favourable capital treatment. If you’re planning a vehicle purchase, make sure you act before 6 April 2025 to lock in the current rules or speak to your accountant to explore alternatives.
Want help understanding how this change affects your business? Get in touch we’ll keep it simple, strategic, and tax-efficient.