Cast your minds back to February 2024. The Conservative Government is trying to introduce hefty tax implications on pick-up trucks, but immediate opposition sees them back-down. 

Remember that? Well, from April 2025 the hike in tax will be back. Pick-up truck owners can expect to see an increase of up to 236%!

What Does this Mean for Double-Cab Pick-Up Drivers in 2025?

Double-cab pick-up (DCPU) drivers will face a substantial hike in Benefit-in-Kind (BIK) tax rates, per the latest announcement in the Autumn Budget. Under new tax regulations, DCPUs with payloads of one tonne or more will now be classified as company cars, significantly impacting their tax treatment for both income and corporation tax.

What Does this Look Like?

Having championed the Ford Ranger and knowing a lot of our customers are driving them, here’s a short summary of how the nex tax implications may impact you. 

The Ford Ranger 2.0-litre diesel, with CO₂ emissions of 230g/km, will shift to the top BIK tax rate of 37%. This could result in an annual BIK value of around £22,200. For a 40% taxpayer, this translates to £8,880 annually, or roughly £13,320 a year for those taxed at the 60% rate – an approximate increase of 236% over the current fixed BIK charge of £3,960 for light-commercial vehicles.

Who Will Be Impacted?

The new rules, effective April 6, 2025, for income tax and April 1, 2025, for corporation tax, will affect both new and existing double-cab pick-up owners. However, two-door, two-seat single-cab models and extended-cab models with two doors and four seats appear exempt from these changes.

What About in the Interim?

Businesses and individuals who purchase, lease, or place orders for double-cab pick-ups before April 6, 2025, will qualify for transitional BIK arrangements, allowing them to maintain the prior tax treatment until the vehicle is sold, the lease expires, or until April 5, 2029, whichever occurs first.

As a result, if you’re currently looking for a new pick-up, the Ford Ranger Wildtrak and Volkswagen Amarok would qualify and be a smart choice before the changes come in.