ISUZU CLARIFIES TAX TREATMENT FOR DOUBLE & EXTENDED CAB PICK‑UPS: VAT & ROAD TAX STILL UNCHANGED

Isuzu UK is committed to clarity and transparency following the significant tax changes introduced in April 2025. While Benefit-in-Kind (BIK) and Capital Allowances (CA) legislation for double and extended cab pick-ups have shifted, classifying them as company cars for tax purposes, Vehicle Excise Duty (VED, also known as road tax) remains at the commercial level of £345 per year, and VAT is still fully reclaimable on vehicles with a 1‑tonne payload for VAT‑registered businesses making fully taxable supplies.

Despite the shift in classification, VED for these vehicles continues to be charged at the commercial vehicle rate of £345 per year, offering continued affordability for business users.

Similarly, VAT remains fully reclaimable on all double and extended cab pick-ups with a payload exceeding one tonne, provided the purchasing business is VAT-registered making fully taxable supplies. These two core financial advantages provide essential ongoing support for businesses that rely on pick-ups for day-to-day operations.

As of 6^th April 2025, newly registered double and extended cab pick-ups are now subject to company car BIK rates, which vary from 3% to 37% depending on CO₂ emissions. Zero-emission vehicles with payloads over one tonne begin at the lower end of this scale, with a 3% rate increasing by one percentage point annually until 2028.

However, a transitional period is in place. Pick-ups that were ordered, purchased, or leased before 6^th April 2025 will retain their previous classification and benefit from the historic flat-rate commercial vehicle BIK treatment until disposal, lease expiry, or 5^th April 2029.

Capital Allowance rules have also changed as of 1^st April 2025 for corporation tax and 6^th April for income tax. Double and extended cab pick-ups are no longer eligible for treatment as ‘plant and machinery’ and are now taxed in line with company car writing-down allowances, which are calculated based on CO₂ output. These rates can be 6%, 18%, or 100% for zero-emission vehicles. It is important to note that expenditure must be incurred prior to 1^st October 2025 to fall under the old regime.

Industry feedback gathered by Isuzu UK has revealed widespread misunderstanding regarding the extent of these legislative changes. Internal research and dealer insight show that over 71% of pick-up buyers, 68% of accountants, and 59% of non-Isuzu dealers are still uncertain about how the changes affect VED and VAT. This has led to frequent and unnecessary concerns, especially among professionals in agriculture, construction, and other commercial sectors who rely on pick-ups as working vehicles.

Alan Able, Managing Director of Isuzu UK, commented: “As the Pick-Up Professionals, we and our dealer network are having the same conversations daily. We want to reassure the public and business owners that VAT remains reclaimable, and VED is still at the commercial rate. These benefits continue to support tradespeople, farmers, and fleet operators across the UK.”

The change in legislation originates from a Court of Appeal ruling, which found that double and extended cab pick-ups do not demonstrate a predominant suitability for transporting goods over passengers. As a result, HMRC has moved to classify these dual-purpose vehicles as cars for the purposes of BIK, CA, and deductions from business profits.

It is important to clarify, however, that single cab pick-ups are unaffected by this change and will continue to be treated as commercial vehicles in all respects.

Oliver Garner, Head of Tax at Isuzu UK, added: “We understand these changes are complex. Our priority is helping customers navigate this evolving landscape with clear, factual guidance, particularly around order dates, payloads, and eligibility for transitional relief.”

Isuzu UK remains committed to supporting both customers and dealers through this transitional period. The brand will continue to engage with government and industry bodies and will provide regular updates as the situation evolves. Clear, accurate information remains central to Isuzu’s mission to serve working professionals across the UK.

Taxation Changes for Double and Extended Cab Pick-Ups

For Capital Allowances (CA), the changes came into place on 1^st April 2025 for corporation tax and 6th April 2025 for income tax, whereas for Benefit-in-Kind (BIK), the changes were introduced on 6^th April 2025.

Isuzu UK is proud to announce a new partnership with two of the country’s most iconic countryside events, The Game Fair and Scottish Game Fair, for the 2025 season. This collaboration marks a significant alignment between Isuzu’s go-anywhere capability and the values of Britain’s rural communities. Designed to celebrate outdoor life, field sports, and working countryside culture, both shows provide the ideal backdrop for showcasing the strength, reliability, and versatility of the Isuzu D-Max range. From live demonstrations and hands-on experiences to major competition sponsorships, Isuzu will be deeply embedded in the heart of both events.

As part of this exciting collaboration, Isuzu will support both events by providing a fleet of working vehicles for essential on-site operations, including setup, logistics, show day duties, and derigging activities. In addition, Isuzu will exhibit prominently at both shows, allowing visitors to explore the latest Isuzu D-Max range – the award-winning pick-up known for its toughness, versatility, and off-road prowess. From farmers and gamekeepers to outdoor enthusiasts and rural business owners, the Isuzu D-Max continues to be a trusted companion in the countryside.

Attendees will also have the chance to experience the Isuzu D-Max in its natural habitat through specially curated off-road driving experiences at both events. These exclusive courses will be designed to push the D-Max to its limits, offering visitors the chance to get behind the wheel and explore features such as Rough Terrain Mode, 4WD, rear differential lock, and Hill Descent Control – all in challenging, real-world conditions tailored to each venue.

At The Game Fair, Isuzu takes on the prestigious role of Official Vehicle of the Gundog Championships, supporting one of the most iconic and respected aspects of the show. The championships include a variety of hotly contested events such as The Home International Team Competition, The Euro Challenge, The HPR (Hunt, Point, Retrieve) Home International Competition, and The Minority Gundog Breed Challenge. With fierce competition and a heritage steeped in tradition, these events celebrate the unique relationship between handler and working dog. Isuzu branding will be highly visible throughout the Gundog Championship arenas, with D-Max models showcased nearby and integrated into event operations.

Isuzu is also named the Official Vehicle of The Game Fair Challenge – one of the standout shooting competitions of the weekend. This 50-bird English Sporting clay competition attracts shooters from across the UK and beyond. Open to all, regardless of CPSA membership, the event features a daily cash payout and a course developed by the world-renowned team at E.J. Churchill. The overall winner gets the latest Isuzu pick-up for 6 months. It’s a highlight of the shooting calendar and a perfect fit for the spirit of the D-Max.

Ashley Cooper, Commercial Director at The Game Fair and Scottish Game Fair, commented: “We’re thrilled to welcome Isuzu UK as a key partner for 2025. Their vehicles are synonymous with capability, reliability and rural practicality – values that resonate deeply with our audience. Having Isuzu involved across logistics, on-stand activations, and as headline sponsor of major competitions like the Gundog Championships and Game Fair Challenge, truly strengthens the experience for our visitors.”

George Wallis, Head of Marketing at Isuzu UK, added: “Being part of The Game Fair and Scottish Game Fair really hits the mark for us. These events are a perfect match for our brand and our customers – people who live, breathe and work in the countryside. It’s a great chance to show what the 4×4 D-Max can do – whether it’s hauling, climbing or crossing tricky terrain, the D-Max is always game. Let’s just say, we’ll pick up when others get stuck!”

The Game Fair will take place from 25 – 27 July 2025 at Ragley Hall, Warwickshire, and remains the UK’s leading celebration of the Great British Countryside. A staple of the rural calendar, the show gathers outdoor enthusiasts, families, rural professionals and countryside lovers for three days of shooting, fishing, food, country living and conservation. To find out more and get your tickets, visit www.thegamefair.org.

The Scottish Game Fair will be held from 4 – 6 July 2025 in the historic grounds of Scone Palace near Perth, Scotland. This much-loved event showcases the very best of Scottish rural heritage, including field sports, crafts, traditional food, and educational experiences that reflect Scotland’s rich outdoor culture. To find out more and get your tickets, visit www.scottishfair.com.