Changes to the tax treatment of Double Cab Pick-Ups (DCPU)

HMRC have issued new guidance which will change the income tax and capital allowance treatment of DCPUs from April 2025.

Traditionally DCPUs with payloads over 1 tonne have been treated for tax purposes as vans and as a result benefited from the lower benefit in kind tax rules and more favourable tax-free capital allowances.   Overall this has meant that historically it has been tax efficient to own and run a DCPU through your limited company. 

Where a DCPU is purchased after April 2025 the tax treatment will depend on whether the vehicle was primarily constructed to carry goods or people.  If the vehicle was constructed primarily to carry goods, the tax treatment will continue under the more favourable 'van route'. Where the vehicle was primarily constructed to carry people, the tax treatment will be that applicable to cars.  This means most DCPU will be taxed as cars and taxpayers will suffer sufficiently higher benefit in kind tax charges and a reduction in the Company's capital allowances will be seen. 

Where a vehicle was purchased before April 2025 the existing 'van' rules will still apply until April 2029.