A recent Court of Appeal ruling is set to reshape the tax treatment of double-cab pickups (DCPUs). From 6 April 2025, their classification will depend on an assessment of the vehicle’s overall construction and primary suitability at the point it is made available.
For direct tax purposes, a vehicle primarily designed to carry goods or burden qualifies as a van. However, most DCPUs serve a dual purpose—accommodating both passengers and cargo—meaning they lack a clear primary suitability. As a result, most DCPUs are expected to be classified as cars when calculating benefit in kind charges.
To ease the transition, employers who purchased, leased, or ordered a double-cab pickup before 6 April 2025 can continue using the previous tax treatment until the earlier of:
- Disposal of vehicle
- Lease expiry
- 5 April 2029
Businesses should review their vehicle fleets and tax planning strategies accordingly. With these changes, understanding the classification of DCPUs has never been more critical.
