The Budget report says that double cab pickups are set to be taxed as cars from April 2025.

This news comes after a U-turn on the same decision in February, where HMRC announced double cab pickups were to be classed as cars not vans for income tax, only to reverse that decision a week later so that double cab pickups were back to being vans.

Eight months later, the government has decided to steer the taxation of double cab pickups back to being cars.

The change in taxation will come into effect from 1 April 2025 for corporation tax and 6 April 2025 for income tax, where double cab pickups will then be treated as cars for the purposes of capital allowances, benefits in kind, and some deductions from business profits.

The existing capital allowances treatment will apply to those purchased before April 2025. Furthermore, the transitional benefit-in-kind arrangements will apply for employers that have purchased, leased, or ordered one before 6 April 2025. In this case, they will be able to use the previous treatment, until the earlier of disposal, lease expiry, or 5 April 2029.

According to the HMRC employment income manual,  a double cab pickup vehicle has:

• a front passenger cab that contains a second row of seats and is capable of seating about four passengers, plus the driver
• four doors capable of being opened independently, whether the rear doors are hinged at the front or the rear (two-door versions are normally accepted to be vans) and
• an uncovered pickup area behind the passenger cab.

So, will we see a flurry of orders for double cab pickups in the next few months while you can still claim back the VAT and get a 100% deduction from profits in the year of purchase?

If I were you I would get in ahead of the rush. But, don’t blame me if they U-turn on this yet again.