Could your double cab pickup truck be classified as a car?
If you currently own, lease or drive a double cab pickup (DCPU) truck, one announcement made in the 2024 Budget will be of particular interest.
Double cab pickups will now be treated as cars, for tax purposes.
DCPUs with a payload of one tonne or more will no longer be classed as goods vehicles and will be classed, instead, as cars – potentially affecting your tax and benefits in kind (BiK).
The move to change the classification of DCPUs from goods vehicles to cars, was first suggested by the previous Conservative government, back in February 2024. But following outrage from the farming and motoring communities, the then government swiftly carried out a U-turn (in keeping with the motoring theme) and cancelled this idea.
In the 2024 Budget, Rachel Reeves, has now reversed the U-turn and new legislation will be brought in to switch the tax treatment of DCPUs.
From 1 April 2025 for corporation tax, and 6 April 2025 for income tax, DCPUs will be treated as cars for:
Capital allowancesBenefits in kindSome deductions from business profits
The existing capital allowances treatment will apply to those who purchase DCPUs before April 2025, according to the latest legislation. Transitional benefit-in-kind arrangements will apply for employers that have purchased, leased, or ordered a DCPU before 6 April 2025. They will be able to use the previous treatment, until the earlier of disposal, lease expiry, or 5 April 2029.
Talk to us about whether your DCPU is affected.
This change to the tax treatment of DCPUs is likely to have a significant impact for fleet managers and sole traders that use their DCPU as both their trade and personal vehicle.
If you’re currently driving a DCPU and are worried about whether your tax and benefits in kind will be affected, we’ll be happy to run you through the changes and how they apply to you.
