The Future of Double-Cab Pickups in the UK: What the 2025 Tax Changes mean

Starting in April 2025, double-cab pickups will see a shift in how they’re taxed in the UK, bringing about some significant changes for both businesses and employees.

The most noticeable change is that these vehicles will no longer be classified as vans but as cars for tax purposes. This means higher Benefit-in-Kind (BIK) tax rates for employees using them for personal journeys. At the moment, double-cab pickups are taxed at the lower van rate, but after April 2025, they will be taxed like cars, with the rate depending on factors such as emissions and the vehicle’s list price.

For businesses, the change is also significant. Right now, businesses can claim 100% tax relief in the first year when purchasing a new double-cab pickup under the Annual Investment Allowance (AIA). But from April 2025, that will no longer be the case. Instead, businesses will be eligible for an 18% annual writing-down allowance, which means tax relief will be spread out over several years, rather than being claimed upfront.

Feel free to reach out to any member of our team if you have questions. Below are a few you might find useful.

Can I Still Get an Amarok Before April 2025?

Yes, buyers still have the opportunity to purchase a Volkswagen Amarok (or similar double cab pickups) before April 2025. If you buy the vehicle before this date, you’ll be able to take advantage of the current tax rules, which are often more favourable than those that will come into effect after April 2025.

How Long Can I Keep My Amarok?

If you purchase an Amarok before April 2025, you can continue to benefit from the current tax rates for as long as you own the vehicle. There’s no immediate requirement to change your vehicle or its tax status. However, once the new tax rules are in place, any future vehicles purchased (or new double cab pickups) will be subject to the higher tax rates, regardless of the model or age of the vehicle.

If you’re unsure how the new tax changes will impact your business or personal vehicle plans, Cordwallis is here to make things easier for you. We know it can be a lot to take in, and we’re happy to help you navigate the changes. Whether you’re thinking about upgrading to a new double-cab pickup or just want to chat through your options, we’re here to assist. Why not stop by and take one of the latest models for a test drive? We’ll make sure you have all the info you need to make the best decision. Drop us a message today and let’s talk about what’s next.

No Change To VAT Rules

There is no change to the VAT rules on all pickup trucks.
 
Benefit In Kind Tax Changes
The change only affects Benefit In Kind (BIK) tax for double cab pickups which are used for some private use.
 
From 6th April 2025 double Cab pickups with a payload over one tonne will be classified as cars for BIK purposes and will incur some hefty tax bills. This only applies to vehicles with some private use. 
 
3 Year Grace Period
If you buy or lease a qualifying pickup before 6th April 2025 the new BIK rules will not apply for 3 years (until 6th April 2028) even if you do use it for private use.
 
If you have a qualifying pickup on order already and delivery is after 6th April 2025 the new BIK rules will not apply until 6th April 2028 even if you do use it for private use.
 
If you place an order now for a qualifying pickup before 6th April 2025 and delivery is after 6th April 2025 the new BIK rules will not apply until 6th April 2028 even if you do use it for private use.
 
 
No Impact If No Private Use
If a double cab pickup truck is used solely for business there is no BIK tax.

Give us a call on 0208 582 6000 or email us at contactus@cordwallis.co.uk

 

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