One of the surprise announcements in the budget and hidden in the detail was a change in the way double cabbed pickups will be treated for tax purposes.

This has been a controversial area and was tested in the Courts in the Coca-Cola case. The Conservatives had announced they would change the law in February, but announced an almost immediate u turn after pressure from businesses.

The Chancellor has confirmed that double cab pickups will be classed as cars for income tax and national insurance purposes from April 2025. There will be no change in treatment for pickups bought before this date.

The changes will mean that users will pay a much higher level of tax on these vehicles. In addition, the rules around personal use on cars is much more stringent than with vans, where small incidental trips are ignored.

The rate of tax relief for a business will also be slower, with capital allowances being at lower rates for cars.

If you are considering buying one of these vehicles, it would make sense to do so before April 2025 to take advantage of the more beneficial “van” rules.