The punitive diesel pickup truck tax coming for Britain's farmers

Telegraph

4 hours ago

While sales of demonised diesel cars continue to plummet in the face of large tax rises, there is a strange blip in the market which has seen a surge in popularity for some of the largest and most polluting vehicles – pickup trucks.
However, this blip is set to slip in the face of new taxes, sending pickup sales crashing. But is it fair, and how can those who genuinely need these versatile vehicles drive one without picking up a whopping bill?
The reason for their popularity was a simple tax loophole. Pickups with a payload of more than 1000kg were classified as commercial vehicles. That meant the Inland Revenue would only charge a flat rate for the perk of having the vehicle for personal use, the same as applied to any van.
As that flat rate would include any accessories, many drivers would choose a pickup as their company car, ticking the box for the most expensive model, laden with the largest capacity V6 (or larger) engine and every optional extra. These four-door, five-seater 'double cab' variants have all the practicality of a large SUV and can cost £65,000, although their owners will have been paying the same tax as a florist with an ageing Fiesta van.
400 per cent tax increase
But now the loophole has been closed. Since April 2025, double cab pickups are classed as cars for company drivers, which means they are taxed based on the official exhaust emissions. This inevitably puts these heavy, bluff-fronted vehicles in the highest taxation category and means the keeper could experience a tax increase of more than 400 per cent.
On the big-selling Ford Ranger Wildtrak, for example, a higher rate 40 per cent taxpayer will now be faced with a bill of £8,322 per year rather than the £1,608 they would have paid previously.
It's about time, say some campaigners, who have long thought the loophole was being used by drivers who had no need for a pickup and yet were paying less company car benefit tax per year for driving a 3.0-litre diesel truck than they would for a 1.0-litre Fiat 500.
The Green Party's Jenny Jones says: 'It's clear that some drivers were using the tax benefits intended for genuine businesses to subsidise their choice of the most polluting and inefficient diesel pickups. It is reasonable for the tax system to recognise that and encourage people to switch to more efficient vehicles.
'Genuine business users who need a pickup will still have access to tax concessions, while the new increasing number of electric and hybrid commercial vehicles offer more sustainable alternatives for everyone.'
Genuine business users
But inevitably it has gone down badly with those who feel they need a double-cab pickup for their business – particularly the farming community, who are already feeling victimised by other punitive new taxes.
The National Farmers' Union deputy president David Exwood says: 'Farmers and growers rely on double cab pickups every single day to go about their farming duties and there are few vehicles that can be used as an alternative. This means that, if plans to reclassify them as cars are not changed, many will face an unaffordable tax. This will add to the financial burden farmers are already straining under and hinder our ability to produce the nation's food.'
To try and placate the business users and soften the blow, the Government has given an unusually generous transition period. Any business which bought, leased or ordered a double cab pickup before 6 April 2025 will be allowed to keep the old tax rate until 5 April 2029, even if the truck is allocated to a new driver. However, if it is sold or the lease expires, the new owner won't get the same tax benefit.
Are they really cars?
The rules also only apply to double cab pickups, which have seats behind the driver. The official HMRC guidance categorises a vehicle as a car if it 'has side windows behind the driver and passenger doors […] particularly if it is fitted, or is capable of being fitted, with additional seating behind […] the driver'.
This means the more utilitarian vehicles used by the largest businesses will not be affected. Filip Czajkowski, spokesman for one of the biggest pickup makers, Isuzu, says: 'We've not seen a major difference in sales following the April benefit-in-kind tax changes. A major part of our customer base is fleets, where the vehicles are only used as work vehicles, with no personal use, so the tax doesn't apply. These will be the major energy providers, rail maintenance et cetera.'
Other makers are taking a different route, reflecting what's happening in the car market by introducing hybrid or even pure electric double cab pickups. Ford's new plug-in hybrid (PHEV) Ranger is seen as particularly competitive because it maintains the 3,500kg towing ability of the diesel version. This is essential for many users, who love a pickup's ability to effortlessly haul everything from horseboxes to racing cars.
Hybrid and full electric
The new Ranger PHEV has official emissions of 68g/km – less than the 1.0-litre Fiat 500 mentioned earlier – based on the fact it can be plugged in and cover some miles on electric power rather than using its 2.3-litre petrol engine. That means it is taxed at 19 per cent compared with the diesel's 37 per cent, slashing the tax bill from £8,322 to £4,191 for a higher rate payer.
If that's still too much, there is the full electric route. Isuzu has revealed an EV version of its popular D-Max, with the first customer deliveries due in early 2026. The tax bill for the 2026/27 year will be only £1,123 for those 40 per cent payers, although the trade-off is a range of only 163 miles – and much less if you are using its 3,500kg towing capability.
We will be spared the 'ultimate' electric pickup in the UK, however, Tesla's massive Cybertruck is not legal to drive on British roads due to its size, weight and sharp-edged bodywork. There are also no plans to bring Ford's six-metre long, three-tonne F-150 Lightning electric.
Which is just as well – it would be ironic if the tax aimed at ridding British roads of big, bling pickups resulted in an influx of even larger and more ostentatious models.