Why is the company car tax loophole for pick-ups being closed?

Why is the BIK company car tax loophole for double-cab pick-up trucks with a payload of over 1000kg going to be closed from April 2025?

Double-cabs with a payload of over 1000kg are currently classified as light commercial vehicles, but in Febraury 2024 HMRC announced they would instead be classified and taxed as regular passenger cars, moving to the emissions-based tax system. These plans were later dropped just days later following backlash from pick-up users, but the Labour government has since reversed this, so from April 2025, double-cab pick-ups will be classified and taxed as cars with the emissions-based system, as was originally planned by the HMRC, meaning company car tax costs will inevitably skyrocket for pick-up users.

Asked on 27 January 2025 by Joshua Bacon

Answered by Craig Cheetham
The government claims that the loophole is being close because too many people are using the loophole to run a double-cab pick-up as a car, and are taxed as such. Utility and extended cab pick-ups which, also have back seats but only two doors, are still treated as commercial vehicles. We expect there will be a lot more of those on the market soon.
Tags: vans
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