Hidden deep in the budget yesterday was an announcement that double-cab pick ups will be classed as cars for tax purposes from April 2025.
A little manouvre that will affect a lot of people across the UK.
This change will come into effect from 1 April 2025 for corporation tax and from 6 April 2025 for income tax which means that double-cab pick ups will be treated as cars for the purpose of capital allowances and benefits in kind.
The existing tax treatment for double-cab pick ups will apply to those bought/leased before April 2025 and will run until the earlier of the disposal, lease expiry or 5 April 2029.
Only back in February did the government announce that these vehicles would be classed as cars and then did a u-turn a week later and now it is back.
Double-cab pick ups have been a point of debate over the years. The definition of one can be found in EIM23150 – https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23150
If you would like any help on these rules then please get in touch on 01782 479699.