Answers · UK 2025/26

How are double cab pickups taxed as company vehicles in 2026/27?

Since 6 April 2025, most double cab pickups with a payload of one tonne or more are treated as cars, not vans, for benefit-in-kind and capital allowances purposes, based on their primary suitability rather than the old VAT test. This means a CO2-based percentage of list price applies instead of the flat van benefit charge. Vehicles bought, leased, or ordered before 6 April 2025 keep the old van treatment until disposal, lease expiry, or 5 April 2029.

Last updated: 1 July 2026Last reviewed: 1 July 2026How we verify

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For many years, double cab pickups with a payload of one tonne or more were treated as vans for both benefit-in-kind (BIK) and capital allowances purposes, following the VAT definition of a van. This made them a popular, tax-efficient choice for business owners who also wanted a vehicle suitable for family use. That treatment changed from 6 April 2025. **What changed** HMRC now classifies a double cab pickup based on its "primary suitability" at the point it is made available -- only vehicles primarily suited for the conveyance of goods count as vans. Because most double cab pickups have roughly equal capacity for carrying passengers and goods, HMRC guidance now treats most of them as cars rather than vans for direct tax purposes. **Effect on Benefit in Kind** As a car, the BIK charge is calculated as a percentage of the vehicle's list price based on CO2 emissions -- typically 35-37% for a diesel pickup -- rather than the flat van benefit charge (£3,960 for 2025/26). On a £45,000 double cab pickup with a 37% BIK rate, the taxable benefit becomes £16,650, compared to the flat £3,960 van charge -- a dramatic increase in the employee's tax bill and the employer's Class 1A NI. **Effect on capital allowances** For expenditure incurred on or after 1 April 2025 (Corporation Tax) or 6 April 2025 (Income Tax), double cab pickups no longer qualify for the more generous "plant and machinery" capital allowances treatment given to vans (which typically allowed a 100% first-year deduction via the Annual Investment Allowance). Instead, they are taxed in line with company car writing-down allowances, which are much slower -- often 6% or 18% per year depending on CO2 emissions, rather than an immediate full deduction. **Transitional protection** If you purchased, leased, or had a binding order in place for a double cab pickup before 6 April 2025, the previous van-based treatment continues to apply until the earliest of: the vehicle being disposed of, the lease expiring, or 5 April 2029. **VAT unaffected** The VAT treatment is unchanged -- VAT remains fully reclaimable (subject to normal input VAT rules) on double cab pickups with a payload over one tonne, for VAT-registered businesses making taxable supplies. Vehicle Excise Duty also remains at the lower commercial rate. **Practical impact** Businesses considering a double cab pickup now need to weigh the higher ongoing BIK and slower capital allowances against the vehicle's practical versatility, and should model the total cost using both the old and new rules if replacing an existing pre-April-2025 vehicle.