Double-cab pick-up tax hike: Everything you need to know

Following the Autumn Budget, it’s been confirmed that double cab pick-up trucks will be treated as company cars from April 2025.

The decision follows the previous government’s u-turn on the matter, following backlash from the commercial and fleet sector. From April 2025, all double-cab pick-up vehicles with a payload of one tonne or more will be classed as a car.

However, transitional BiK arrangements will apply to businesses that have purchased, leased or ordered a double cab pick-up prior to April 2025. The Treasury has confirmed that they will remain within their current band until the selling of, lease expiry date or April 5 2029.

Read more: BiK rates 2024 – Everything you need to know

Considering most double-cab pick-ups are fitted with larger diesel engines, the change means many of them will now fall under the full 37% BiK rate.

In real terms, that’s around five times more tax than they are currently subjected to. Double-cab pick-ups have been seen as a lucrative way of keeping VAT and BiK tax rates down for business users. But that’s all set to change now. 

It could also signal a change for manufacturers. While some pick-ups are available in single-cab form, not all of them are. For example, the Volkswagen Amarok and KGM Musso currently offer only double-cab options in the UK.