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The UK government has announced significant tax changes that will impact Ford Ranger owners and businesses operating double-cab pickup trucks. As part of a reclassification set to take effect in April 2025, double-cab pickups—previously treated as light commercial vehicles (LCVs)—will now be taxed as passenger cars for Benefit-in-Kind (BIK) and capital allowance purposes.
Currently, double-cab pickups like the Ford Ranger benefit from a fixed, lower-rate BIK tax, set at £3,960 per year. However, under the new rules, these vehicles will be taxed based on a percentage of their list price and CO2 emissions—similar to company cars.
For a Ford Ranger with CO2 emissions of approximately 230g/km, this reclassification places it in the highest 37% BIK tax bracket, meaning:
Additionally, from April 1, 2025, capital allowances for newly purchased double-cab pickups will follow passenger car rules. Businesses will no longer be able to claim full expensing or 100% Annual Investment Allowance (AIA) on these vehicles, significantly reducing tax relief options.
To ease the transition, HMRC has confirmed that businesses that purchase or lease a double-cab pickup before the deadline can continue applying the current tax rules until the vehicle is sold, the lease ends, or April 5, 2029—whichever comes first.
The reclassification follows a legal case in 2020 that challenged whether certain double-cab pickups should be treated as commercial vehicles for tax purposes. The government’s decision aligns these vehicles with company cars, arguing that their use often extends beyond purely commercial purposes.
These changes will have a substantial impact on businesses using pickups for both work and personal use, increasing running costs for company vehicle users. Industry experts suggest that fleet operators and business owners may need to reassess their vehicle choices and explore tax-efficient alternatives before the April 2025 deadline.
With these changes fast approaching, businesses and individuals who rely on double-cab pickups may need to act quickly to mitigate increased tax costs. The transition period allows time to plan, but long-term vehicle taxation will now reflect the standards applied to company cars rather than light commercial vehicles.
Keith Motors are offering Ford Ranger customers savings when they purchase a Ford Ranger before 31st March 2025. Please click here for more information on savings.