Home / Business and Economy / Pick-up Truck Loophole Dodges New Car Tax Hike
Pick-up Truck Loophole Dodges New Car Tax Hike
2 Mar
Summary
- New car tax changes starting April 1 affect most vehicle types.
- Pick-up trucks may benefit from a loophole classified as commercial vehicles.
- Some pick-up models will be taxed at a flat annual rate of £345.
New car tax regulations set to commence on April 1 will likely increase Vehicle Excise Duty (VED) for many vehicle owners. Standard VED rates for cars registered after 2017 are rising from £195 to £200. The most significant increases impact new, high-emission petrol and diesel cars, with annual charges for those emitting over 255g/km of CO2 climbing from £5,490 to £5,690. This affects a range of models, including luxury vehicles and even some Ford Mustang and Ranger variants.
However, a potential loophole exists for drivers with pick-up trucks, particularly Ford models. These vehicles are often classified as commercial "light goods vehicles" for tax purposes. Consequently, they are exempt from the Expensive Car Supplement and the escalating VED rates applicable to cars. Instead, these pick-up trucks are taxed at a flat annual VED rate of £345, a significant saving compared to other vehicle types facing higher charges and the luxury car tax which rises to £435.
Further tax changes are on the horizon. From April 2026, the maximum first-year VED charge for the most polluting new cars will increase to £5,690. In April 2025, the top first-year charge for new petrol and diesel cars had already risen to £5,490. This upfront tax is levied when a vehicle is first registered. Even zero-emission vehicles, which previously benefited from the lowest rates, will now be subject to VED, with a separate pay-per-mile scheme planned from April 2028.
