Double cab pickups (DCPUs) have long been a favourite for businesses in construction, agriculture, and other trades requiring tough, versatile vehicles.
They’re especially useful in the highlands and islands of Scotland and many of our clients have one or two in their fleet.
But with sweeping tax changes on the horizon, should you buy one now, wait, or abandon the idea altogether? Are they still a worthwhile investment?
From 1 April 2025 for Corporation Tax and 5 April 2025 for Income Tax, DCPUs will no longer be classed as commercial vehicles for capital allowances or Benefit in Kind (BIK) purposes.
Instead, they will be treated as cars, with stricter tax implications.
Until then, businesses can still take advantage of the current rules:
- Capital allowances: DCPUs qualify for the Annual Investment Allowance (AIA), allowing the full purchase cost to be deducted from profits.
- BIK treatment: Transitional rules mean DCPUs purchased or leased before April 2025 will retain their favourable tax treatment until they’re sold, the lease ends, or April 2029 – whichever comes first.
However, these windows are rapidly closing, forcing business owners to make a tough decision.
Why speed matters
If you’re considering a DCPU, acquiring or ordering one before the April deadlines could lock in significant tax savings.
Acting quickly means you can claim the full AIA and enjoy lower BIK costs, making the vehicle more affordable in the short term.
Delaying the purchase or ordering of a DCPU until after the deadline, on the other hand, will expose you to stricter car taxation rules, eroding the financial advantages DCPUs once offered.
Moreover, as the reclassification takes effect, businesses relying on tax efficiency as part of their vehicle strategy may struggle to justify these purchases.
Is it worth rushing?
While speed of acquisition offers tax advantages, it’s not the only factor to consider:
- Rising costs: Even with favourable tax treatment, the operational costs of diesel-heavy DCPUs – fuel, maintenance, and insurance – are rising.
- Sustainability concerns: The push towards electric and hybrid vehicles is gaining momentum, with better incentives and lower emissions aligning with both tax policy and environmental goals.
Businesses should weigh the short-term benefits of buying a DCPU now against the longer-term implications of running these vehicles in an evolving market.
Should you wait or not bother at all?
Waiting could leave you in a stronger position to explore alternative options, particularly electric vans or hybrid vehicles, which increasingly dominate the market.
These alternatives could give you favourable tax treatment – especially as electric and hybrid vehicles benefit from lower BIK rates and other incentives.
On the other hand, if your business depends on the specific capabilities of DCPUs – such as transporting materials across rugged terrain – the decision may come down to buying or ordering one before the deadline or reassessing your fleet entirely.
Equally, buying an electric vehicle may mean relying on a charging infrastructure that, in some places in Scotland, can be sparse.
The verdict
Buying or ordering a DCPU now makes sense if your business has an immediate need, and you can capitalise on the current tax rules.
However, for those who can afford to wait, exploring alternative vehicles could provide better long-term value.
In either case, it’s crucial to review your financial and tax position with a qualified adviser as the speed of acquisition could save you thousands, but only if it aligns with your overall strategy.
