Will new changes in April effect your Isuzu?

UNDERSTANDING THE LEGISLATION CHANGES: FAQ

What are the new changes, and how does this affect double cab pick-ups?

• Benefit in Kind (BIK): From 6^th April 2025, double cab pick-ups will be treated as cars for BIK purposes, shifting from the current flat rate of £3,960 to a variable rate based on CO₂ emissions.
• Capital Allowances (CA): From 1^st April 2025, these vehicles will also be classified as cars for CA purposes, moving away from their prior status as ’plant and machinery.’

Will there be a transitional period before the cut-off date?
Yes. Double cab pick-ups purchased or ordered before 6^th April 2025 for BIK purposes (and 1^st April 2025 for CA purposes) will retain their commercial vehicle classification until the earlier of disposal, lease expiry, or 5^th April 2029.

Why have these changes been made?
The Court of Appeal concluded that double cab pick-ups serve dual purposes, both passenger and cargo transport, necessitating their reclassification as cars for tax purposes.

Are single and extended cab pick-ups affected?
No. Single and extended cab pick-ups remain classified as commercial vehicles.

Does this impact VAT reclaim eligibility?
No. VAT treatment for double cab pick-ups remains unchanged.

Does this impact road tax?
No. Vehicle Excise Duty (VED), also known as road tax or car tax, remains unchanged for double cab pick-ups.

What happens if I purchase a double cab pick-up after April 2025?
Vehicles purchased after this date will be subject to the new tax treatment, leading to higher costs for buyers and businesses.

WHY ACT NOW?
Isuzu UK is encouraging prospective buyers to consider the significant financial implications of delaying their purchase until after April 2025. By acting before the deadline, customers can benefit from the existing flat-rate BIK taxation structure, avoiding potentially steep increases, take advantage of current capital allowances for commercial vehicles, which offer more favourable tax deductions, and lock in their purchase under the transitional rules, ensuring they retain the commercial classification until at least April 2029.

Don’t wait until it’s too late. Take advantage of the existing tax framework by ordering your Isuzu D-Max before 6^th April 2025. For more details speak to Argyll’s local dealer S&S Services on 01292 880080.