Motorists across the UK are set to face significant tax increases from April 2025, as HMRC confirms new rules affecting petrol and diesel vehicle owners, particularly those driving double cab pick-up trucks.

Key Tax Changes Coming into Effect

Chancellor Rachel Reeves outlined a series of tax adjustments in her Autumn Statement 2024, including higher first-year road tax rates for new vehicles and changes to Benefit-in-Kind (BiK) tax rules.

One of the biggest changes affects double cab pick-up trucks, which will now be taxed as cars rather than commercial vehicles. This change will apply to:

• Corporation Tax (from April 1, 2025)
• Income tax, capital allowances, BiK, and business deductions (from April 6, 2025)

Why Are Pick-Up Trucks Being Reclassified?

The decision follows a Court of Appeal ruling, which stated that if a pick-up truck does not have a clear predominant suitability for carrying goods, it should default to being classified as a car rather than a van for tax purposes.

HMRC has also confirmed that from April 6, 2025, it will no longer align its definitions of cars and vans for tax purposes with the VAT classifications, meaning businesses and fleet owners may see a sharp rise in costs.

How Will This Impact Drivers?

The reclassification means drivers of double cab pick-up trucks will now be taxed alongside high-emission petrol and diesel cars, which typically attract a BiK tax rate of more than 35%.

Warnings for Businesses and Drivers

The British Vehicle Rental and Leasing Association has urged business owners and drivers to be aware of the changes, as they could result in thousands of pounds in additional tax costs each year.

Similarly, car manufacturers such as Isuzu UK are advising customers to act now before the new rules take effect.

Isuzu’s Urgent Warning to Drivers

Isuzu UK’s Managing Director, Alan Able, said:

“We appreciate HMRC’s latest clarification, which provides businesses with a more definitive understanding of how both double cab and extended cab pick-ups will be classified from April 2025. This additional guidance is essential for fleets, businesses, and individual buyers as they navigate these significant changes.”

To help drivers avoid higher tax costs, Isuzu has launched a campaign encouraging customers to secure a new double cab pick-up truck before April 2025.

Who Will Be Affected?

• Double cab pick-up trucks purchased before April 6, 2025, will retain their commercial vehicle status until the earlier of disposal, lease expiry, or April 5, 2029.
• Extended cab pick-ups will also be impacted.
• Single cab pick-ups will remain classified as commercial vehicles and will not be affected.

What Happens to Pick-Ups Bought After April 2026?

• Any double cab pick-up trucks purchased after April 2026 will be subject to the new tax rules immediately.
• This means businesses and individual buyers could face higher taxes on their vehicles, potentially leading to enormous unexpected costs.

Final Call to Act Before April Deadline

With the new car tax rules set to take effect in weeks, businesses and drivers are being urged to review their options to avoid being hit with heavy new tax burdens.

For those considering a new double cab pick-up, industry experts recommend purchasing before April 1, 2025, to secure the current commercial vehicle tax classification.