Firstly, what is a double-cab pickup?
According to the employment income manual (EIM23150), 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.
Changes
From 1st April 2025 for corporation tax, and 5th April 2025 for income tax, double-cab pick-ups will be treated as cars for capital allowances and Benefits in Kind purposes.
Existing capital allowances will apply to the purchase of double cab pick-ups until April 2025, and thereafter will be treated as cars for capital allowance purposes.
Transitional Benefit in Kind arrangements will apply to double cab pick-ups purchased, leased and ordered before April 2025, meaning old rules will apply and will be able to be used until whichever is earlier: disposal, lease expiry, or 5th April 2029.
The changes mean that multi-purpose vehicles with a payload of one ton or more and those with a second row of seats, will be classed as cars for Benefit in Kind purposes.
Benefit in Kind legislation requires that a van is a 'goods vehicle' – “a vehicle of a construction primarily suited for the conveyance of goods or burden”. Those vehicles with less than a ton are already being treated as cars.