🚗 Double Cab Pick-Ups: The Tax Rules Have Changed – Here’s What You Need to Know

charlotte18000
Aug 28, 2025
3 min read

If you're thinking about buying a double cab pick-up for your business, it’s important to be aware that HMRC changed the tax rules from 6 April 2025 – and these changes are now live.

What used to be a great way to claim generous tax relief has just become a little less attractive from a tax point of view. Here's what’s changed – and what it means for your business.

❗ The Key Change

Before 6 April 2025, double cab pick-ups were classed as commercial vehicles for tax purposes. That meant:

You could claim 100% tax relief in the year you bought the vehicle (known as the Annual Investment Allowance or AIA).
You could also reclaim 100% of the VAT, as long as the vehicle was used exclusively for business and had a payload of at least 1 tonne.

From 6 April 2025, most new double cab pick-ups are now classed as cars for tax purposes. This means:

You can no longer claim 100% tax relief upfront.
Instead, you’ll only be able to claim 18% tax relief each year, on a reducing balance basis – so the tax relief is spread over many years.
The VAT rules have not changed – you can still reclaim VAT if the payload is at least 1 tonne and there’s no private use.

💡 Real Example

Let’s say your business buys a new double cab pick-up for £20,000 + VAT in August 2025.

Purchased	VAT Reclaimed*	Tax Relief in Year 1	Tax Relief Over Time
Before 6 Apr 2025	£4,000	£20,000 (100%)	All tax relief claimed upfront
After 6 Apr 2025	£4,000	£3,600 (18%)	Remaining £16,400 claimed gradually over future years

* Assuming no private use and a payload of 1 tonne or more.

🚙 What About Other Pick-Ups?

Single cab pick-ups (with no second row of seats) are still classed as vans, so the old rules apply – you can claim full tax relief in the year of purchase.
If your double cab is an older model purchased before 6 April 2025, you won’t be affected by the change – unless you decide to replace it.

⚠️ Why It Matters

This change could come as a surprise if you're replacing an older pick-up or expecting the same tax relief as before. The difference between claiming £20,000 all in one year and spreading it over many years can have a big impact on cashflow and tax planning.

✅ What Should You Do Now?

If you’re planning to invest in a vehicle:

✅ Check how the new rules apply to your specific model.
✅ Review your business usage – if there’s any personal use, VAT can’t be reclaimed.
✅ Speak to your accountant before making the purchase – the right advice now could save you money later.

💬 Need Help Understanding What You Can (and Can’t) Claim?

If you’re unsure whether your vehicle qualifies as a van or a car under the new rules – or you want help planning your next business purchase – we’re here to guide you through it.

📩 Get in touch today and we’ll help you understand the tax position, avoid unexpected costs, and make sure you’re getting the best value from your business purchases.

Charlotte Derbyshire FCCA

Chartered Certified Accountant and Founder of Derbyshire Accountants Ltd

Tel: 01256 591 196

Mob: 07407 553 620

Email: Charlotte@derbyshireaccountantsc.om