18-11-2024

Double cab pickups, commonly known as DCPUs, are versatile vehicles featuring two rows of seats and four doors, allowing them to carry multiple passengers while providing a spacious loading area at the back such as the Ford Ranger.

For years, DCPUs have enjoyed favourable tax treatment, as they’ve been classified as vans rather than cars. This classification has offered benefits like lower Benefit-in-Kind (BIK) tax rates for employees using them for work.

What’s that change?

From 6 April 2025, these types of vehicles will be reclassified. HMRC will no longer align its interpretation of the terms “car” and “van” for tax purposes with the definitions used for VAT purposes.

The desire to bring the tax treatment of these vehicles in line with their mixed business and personal use is behind the reason for this reclassification. While they are technically commercial vehicles, many are frequently used as both work and private vehicles due to their high passenger capacity and comfort.

By categorising them as cars, the government aims to ensure that owners using these vehicles primarily for personal purposes pay similar tax rates to those driving traditional cars.

Going forward, classification of double cab pickups will therefore need to be determined by assessing the vehicle as a whole at the point that it is made available to determine whether the vehicle construction has a primary suitability as per the two-part test outlined at EIM23115 onwards.


Transitional arrangements

Transitional arrangements will apply for employers that have purchased, leased, or ordered a double cab pickup before 6 April 2025, whereby they will be able to rely upon the previous treatment until the earlier of disposal, lease expiry, or 5 April 2029. The position prior to 6 April 2025 remains unchanged as outlined at EIM23150 .

Here are some examples that relate to double cab pickups made available to employees.

  • Example 1 – Employer A purchased a double cab pickup on 14th September 2025. Because the purchase occurred after 6th April 2025, the new rules apply, and this vehicle will be classified as a car, triggering a car benefit charge.
  • Example 2 – Employer B leased a double cab pickup on 10th December 2024. As this lease was initiated before 6th April 2025, the previous tax treatment applies until the lease ends or until 5th April 2029, whichever comes first.
  • Example 3 – Employer C initially purchased a double cab pickup on 10th January 2024, which was later traded in for a new model on 10th April 2025. The first vehicle remains under the old rules until the trade-in date. However, the replacement DCPU, acquired after 6th April 2025, is subject to the new classification as a car, resulting in a car benefit charge.
  • Example 4 – Employer D placed an order for a double cab pickup on 5th January 2025, although the vehicle was not received until 2nd September 2025. Since the order was confirmed before 6th April 2025, the previous rules apply until the earlier of - disposal, lease expiry, or 5th April 2029.

These transitional rules are intended to give employers sufficient time to adapt to the new tax treatment, especially for vehicles already in service or in the procurement pipeline prior to the 2025 deadline.


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