“Stealth tax” on pickup trucks buried in Autumn Budget
6th November 2024
Chancellor Rachel Reeves will reclassify double-cab pickup trucks as company cars for tax purposes from April 2025.
Whilst inheritance tax has dominated the headlines, it has emerged that double-cab pickups, often used by farmers and gamekeepers, will no longer be treated as commercial vehicles.
The change, effective from April 2025, could increase the tax burden on a typical double-cab pickup by as much as 211%, according to Countryside Alliance.
For the purposes of capital allowances, benefits in kind (BIK) and some deductions from business profits, these vehicles will no longer be treated as essential tools of the trade.
The move was announced as part of the chancellor’s controversial Autumn Budget. It has been described by Countryside Alliance as a “stealth tax”.
The previous government also tried to implement the change but was forced to reverse it in February 2024 due to a backlash from the farming and motor industries.
Alliance research shows that a typical Nissan Navara Tekna, priced at £33,265 and emitting 167g/km of CO2, will see its BIK rise from £3,960 to £12,308.
The BIK on private fuel benefits will also soar from £757 to £10,286, leading to even higher costs for workers.
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However, self-employed tradespeople will face the biggest blow, according to the Alliance.
They will only be able to deduct 6% of their vehicle’s cost in the first year, slashing potential tax savings from over £9,600 to just £578.84.
In a statement, Countryside Alliance chief executive Tim Bonner said:
“Rachel Reeves’ pickup truck tax will hammer thousands of working people in the countryside and beyond.
“From farmers and gamekeepers to plumbers and builders the twin cab pickup has become the country’s favourite workhorse.”
“The decision to reclassify them as cars will hit working people hard.”
Existing capital allowances treatment will apply for those who purchase double cab pickups before April 2025.
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