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Rachel Reeves’ car tax confusion leaves drivers of popular vehicles liable to £4,400 cost hike this year

Thousands of drivers have been left confused over a tax re-classification which saw motorists of a popular vehicle face higher bills this year.

It comes after Rachel Reeves announced changes to the way double cab pick-up trucks would be treated, with the vehicles now being viewed as company cars attracting higher tax rates.

The change, buried in the small print of the Autumn Budget last year, reverses the previous Government’s U-turn on the issue and will dramatically increase tax bills for drivers of vehicles like the Ford Ranger and Nissan Navara.

Under the new rules, these vehicles will no longer qualify for commercial vehicle tax treatment, despite maintaining their one-tonne payload capacity that previously defined their status.

The reclassification affected Benefit-in-Kind (BiK) calculations and capital allowances, creating significant financial implications for businesses and employees across multiple sectors.

Under the new measures, owners of popular models like the Ford Ranger are confronting annual bills that could surge from £1,608 to £8,880 for higher-rate taxpayers.

The most common double cab pick-up in Britain carries a list price of approximately £60,000 with CO2 emissions exceeding 200g/km, placing it in the 37 per cent tax bracket.

Basic-rate taxpayers will see their annual tax rise from £804 to £4,440, while those earning over £100,000 could face even steeper charges.

Double cab pick-up truck and Chancellor Rachel Reeves

The British Association for Shooting and Conservation (BASC), which has roughly 150,000 members, has responded to mounting concerns from members about the tax changes affecting double cab pick-ups.

Research conducted by manufacturers revealed that 71 per cent of pick-up buyers remain uncertain about the implications of the new legislation, while 68 per cent of accountants and 59 per cent of dealers are similarly confused.

BASC highlighted that widespread misunderstanding surrounding the tax rules has caused many professionals in the agriculture and construction sectors to express particular concern.

The organisation noted that confusion extends beyond buyers to include industry professionals who should be advising on these changes.

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The BiK value for affected vehicles will be calculated at 37 per cent of the list price due to high CO2 emissions, replacing the previous flat rate of £4,020 annually.

For a typical £60,000 double cab pick-up, this creates a BiK value of £22,200, representing a dramatic increase from the commercial vehicle rate.

The additional tax burden amounts to approximately £3,636 for basic-rate taxpayers and £7,272 for higher-rate taxpayers compared to the previous system.

These vehicles will no longer qualify for beneficial tax treatments such as full-expensing for companies or 100 per cent Annual Investment Allowance claims.

Pick-up truck

But the Government did introduce transitional arrangements for employers who purchased, leased or ordered double cab pick-ups before April 6, allowing them to maintain existing tax treatment until disposal, lease expiry or April 5 2029.

HMRC guidance also confirmed that vehicles ordered before the cut-off date but delivered afterwards would still qualify for transitional protection, providing some relief for pending purchases.

The confusion stems from a Court of Appeal ruling that determined double cab pick-ups lack predominant suitability for transporting goods over passengers, prompting HMRC to abandon its previous pragmatic approach based on payload capacity.

However, Vehicle Excise Duty remained unaffected at £345 annually for commercial use, while VAT can still be fully reclaimed on vehicles with payloads exceeding one tonne for VAT-registered businesses making taxable supplies.

BASC has now directed members to online resources explaining the changes and highlighting available discounts on new vehicles through membership benefits, as the organisation works to clarify the complex new regulations affecting rural communities and sporting estates.

LP Staff Writers

Writers at Lord’s Press come from a range of professional backgrounds, including history, diplomacy, heraldry, and public administration. Many publish anonymously or under initials—a practice that reflects the publication’s long-standing emphasis on discretion and editorial objectivity. While they bring expertise in European nobility, protocol, and archival research, their role is not to opine, but to document. Their focus remains on accuracy, historical integrity, and the preservation of events and individuals whose significance might otherwise go unrecorded.

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