Isuzu UK has launched a campaign urging double-cab buyers to order their new pickups now ahead of major tax changes this spring.
From April 2025, double-cabs with a payload of one tonne or more will be treated as cars for the purposes of capital allowances, Benefit-in-Kind and some deductions from business profits.
The move, announced in the Autumn Budget 2024, will lead to a hefty rise in tax liabilities for buyers and businesses alike.
But businesses and drivers who have purchased, leased or ordered a double-cab before April 2025 will retain the current tax benefits until either 5 April 2029 or the vehicle disposal or lease expiry – whichever is earliest.
The change follows a 2020 Court of Appeal ruling that most multi-purpose vehicles, such as double cab pickups, are cars in the case of Payne & Ors (Coca-Cola) v R & C Commrs.
Isuzu’s new campaign raises awareness of the forthcoming changes, dispelling myths circulating on social media, and providing customers with accurate details to make better-informed decisions about when to order a new pickup in 2025.
The campaign serves as a reminder for businesses and buyers to act now and take advantage of the current tax benefits before the new rules come into force.
Understanding the legislation changes: FAQ
What are the new changes, and how does this affect double cab pickups?
- Benefit-in-Kind (BiK): From 6 April 2025, double cab pickups will be treated as cars for BiK purposes, shifting from the current flat rate of £3,960 to a variable rate based on CO2 emissions.
- Capital allowances (CA): From 1 April 2025, these vehicles will also be classified as cars for CA purposes, moving away from their prior status as ‘plant and machinery’.
Will there be a transitional period before the cut-off date?
Yes. Double cab pickups purchased or ordered before 6 April 2025 for BiK purposes (and 1 April 2025 for CA purposes) will retain their commercial vehicle classification until the earlier of disposal, lease expiry or 5 April 2029.
Why have these changes been made?
The Court of Appeal concluded that double cab pickups serve dual purposes, both passenger and cargo transport, necessitating their reclassification as cars for tax purposes.
Are single and extended cab pickups affected?
No. Single and extended cab pickups remain classified as commercial vehicles.
Does this impact VAT reclaim eligibility?
No. VAT treatment for double cab pickups remains unchanged.
Does this impact road tax?
No. Vehicle Excise Duty (VED), also known as road tax or car tax, remains unchanged for double cab pickups.
What happens if I purchase a double cab pickup after April 2025?
Vehicles purchased after this date will be subject to the new tax treatment, leading to higher costs for buyers and businesses.
Why act now?
Isuzu UK is encouraging prospective buyers to consider the significant financial implications of delaying their purchase until after April 2025. By acting before the deadline, customers can benefit from the existing flat-rate BiK taxation structure, avoiding potentially steep increases, take advantage of current capital allowances for commercial vehicles, which offer more favourable tax deductions, and lock in their purchase under the transitional rules, ensuring they retain the commercial classification until at least April 2029.
Isuzu said the new BiK campaign is designed not just to inform but to inspire timely action, ensuring that businesses and individual buyers alike can make the most of D-Max’s durability, versatility and tax efficiency.
Alan Able, managing director of Isuzu UK, commented: “The BiK campaign reflects our commitment to keeping our customers informed and empowered. We recognise that HMRC’s decision represents a fundamental shift in how double cab pickups are taxed.
“With this campaign, we aim to ensure our customers understand the implications and encourage them to act now to avoid higher costs later. The Isuzu D-Max has always been the backbone of businesses, and this campaign underscores the value it offers ahead of the upcoming changes.”
