The Budget Change

Following a Court of Appeal ruling, the government will classify double cab pickup vehicles (DCPUs) with a payload of one tonne or more as cars for specific tax purposes. This change applies from 1 April 2025 for Corporation Tax and 6 April 2025 for Income Tax. As a result, DCPUs will be subject to car-related rules for capital allowances, benefits in kind, and certain business profit deductions.

However, DCPUs purchased before April 2025 will continue to follow the existing capital allowances rules. Additionally, businesses that purchase, lease, or order a DCPU before 6 April 2025 will benefit from transitional arrangements. They can apply the previous tax treatment until the earlier of:

  • Disposal of the vehicle
  • Lease expiry
  • 5 April 2029

Capital Allowances

Capital allowances allow businesses to deduct costs from profits before tax.

From 1 April 2025, Double Cab Pickups will be classified as cars, and capital allowances will be based on emissions. This means allowances could be as low as 6% per year. Customers should consult a tax adviser to understand how these changes will impact them.

Currently, the Ranger Double Cab has a flat commercial BIK monthly rate of £66 for a 20% taxpayer and £132 for a 40% taxpayer.

From 6 April 2025, new taxation rules will apply. BIK rates for the Ranger Double Cab will be based on CO2 emissions, similar to passenger vehicles like the Ranger Raptor and Transit Custom DCIV. This will significantly increase monthly BIK payments.

Monthly Payment 20% Tax Payer 40% Tax Payer
Ranger Wildtrak Double Cab 2.0L EcoBlue 205PS £66 → £305.55 £132 → £611.10
Ranger Wildtrak Double Cab 2.3L EcoBoost 281PS PHEV £66 → £183.36 £132 → £366.73

 

 

Budget Change FAQs

Q.How will a vehicle purchased/ordered/leased before the above dates be treated?

Q.What if I have a lease/funding contract which expires after 5th April 2029?

Q. Are Single Cab or Chassis Cab Pick Ups Affected?

Q. Are there any VAT or Vehicle Excise Duty Changes?

Q.Are Vehicles Registered Before the April 2025 Cut Off Dates exempt?