A significant tax increase on double-cab pickups is set to impact gamekeepers, farmers, and rural tradespeople, raising concerns across the hunting and rural industries.
Under a rule introduced in the recent Budget by Chancellor Rachel Reeves, double-cab pickups will be reclassified as company cars for tax purposes from April 2025. This reclassification could lead to a tax increase of up to 211%, removing eligibility for capital allowances, benefits in kind (BIK), and other business-related tax reliefs.
The change is expected to affect a wide range of professionals, including builders, electricians, and other self-employed tradespeople who rely on these vehicles as essential tools for their work.
Industry stakeholders have expressed concerns about the potential financial strain this could place on individuals and businesses already facing rising costs.
The Countryside Alliance has highlighted the impact on a popular model, the Nissan Navara Tekna. Priced at £33,265 and with CO2 emissions of 167g/km, this vehicle’s BIK will rise from £3,960 to £12,308 – a threefold increase. In addition, private fuel benefits for this type of vehicle will also see a substantial hike, with BIK on fuel rising from £757 to £10,286, adding further financial pressure on rural and hunting trades.
The hardest-hit may be self-employed tradespeople, who stand to lose significant tax savings. Under the new rules, self-employed individuals will be able to deduct only 6% of the vehicle’s cost in the first year, reducing potential tax savings from £9,600 to a mere £578.84. This drastic cut in allowable deductions may discourage investment in these vehicles, impacting the hunting trade and other rural sectors reliant on pickups.
Tim Bonner, chief executive of the Countryside Alliance, criticised the new rule, stating, “Rachel Reeves’ pickup truck tax will hammer thousands of working people in the countryside and beyond. From farmers and gamekeepers to plumbers and builders, the twin cab pickup has become the country’s favourite workhorse. The decision to reclassify them as cars will hit working people hard.”
With the rule set to take effect in April 2025, businesses in the hunting and rural sectors are encouraged to review the potential impact on their operations and prepare for the upcoming changes. The Countryside Alliance and other advocacy groups are expected to continue their efforts to challenge the policy, urging the government to reconsider the reclassification of these essential vehicles.
You can read the full December 2024 issue below:
