Under HMRC’s updated legislation announced in the Autumn Budget 2024, double cab pick-ups will no longer be classified as commercial vehicles for Benefit in Kind (BIK) and Capital Allowances (CA) purposes. Instead, they will be treated as cars, leading to increased tax liabilities for buyers and businesses alike.
UNDERSTANDING THE LEGISLATION CHANGES: FAQ
What are the new changes, and how does this affect double cab pick-ups?
• Benefit in Kind (BIK): From 6th 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 1st 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 6th April 2025 for BIK purposes (and 1st April 2025 for CA purposes) will retain their commercial vehicle classification until the earlier of disposal, lease expiry, or 5th April 2029.
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.
Don’t wait until it’s too late. Take advantage of the existing tax framework by ordering your Isuzu D-Max before 6th April 2025.
For more details speak to Argyll’s local award winning dealer S&S Services on 01292 880080 or visit www.sandsservices.co.uk
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