Vehicles like the Isuzu D-Max are being reclassified (Image: Isuzu)
Potential buyers of a specific vehicle type are being advised to make their purchase before an impending tax alteration takes effect. The change, announced in the Autumn Budget last October, involves a reclassification that will significantly impact taxation.
From April 6, the start of the new tax year, double-cab pick-up trucks will no longer be categorised as commercial vehicles for Benefit in Kind (BIK) and Capital Allowances (CA) purposes. Instead, they will be considered cars, which is expected to result in higher tax liabilities for both purchasers and businesses.
These vehicles are commonly used across the UK, particularly by farmers and those in related sectors. They provide the comfort and space of a family car, combined with the practicality of a load-bearing pick-up.
Ford Ranger (Image: PA)
Tax changes affecting double-cab pick-up trucks
Benefit in Kind (BIK)
From April 6, 2025, double cab pick-ups will be treated as cars for BIK purposes, moving from the current flat rate of £3,960 to a variable rate based on CO2 emissions.
Capital Allowances (CA)
From April 1, 2025, these vehicles will also be classified as cars for CA purposes, departing from their previous classification as ‘plant and machinery’.
Motorists and businesses can sidestep imminent tax changes for a further four years, provided they purchase or put in an order for a vehicle before April 6. Such vehicles will maintain their status as commercial vehicles until they are sold on, the lease ends, or on April 5, 2029 – whichever comes sooner.
Originally tabled by the preceding Tory administration, the changes stirred up controversy which prompted the Court of Appeal to rule that double cab pick-ups, being used both for moving people and goods, should be taxed as cars. However, there are no reforms planned with regards to VAT on Vehicle Excise Duty (VED), universally known as road tax.
The post-April 6 period will see new acquisitions subjected to the updated legislations. One manufacturer, Isuzu UK, has initiated a campaign to alert companies and potential customers to be proactive ahead of the legislative revisions.
Mark Bond, Isuzu sales manager at Roger Young, a dealership based in Cornwall, said: “We recognise that ‘s decision represents a fundamental shift in how double cab pick-ups are treated. At Roger Young Isuzu, we want to ensure our customers are aware of the implications and encourage them to act now to avoid higher costs later. The Isuzu D-Max has always been the backbone of businesses and we will work alongside our valued customer base in navigating these changes in the most effective way possible.”