Volvo's new 4x4 takes on the tax man

  • Sub 200g/km engines
  • Diesels avoids top road tax bracket
  • 30% tax band for company car drivers
Diesel versions of Volvo's new XC60 4x4 will emit less than 200g/km of CO2 when the car goes on sale in October. That's low enough to avoid the top bands for road tax and company car tax.

Both the 161bhp 2.4D and the 182bhp D5 diesel manuals emit 199g/km of CO2. That puts them in Band F, saving £190 over a Band G car at this year's prices. Company car drivers will pay tax on 30% of the car’s P11D value.

This makes the new Volvo competitive with key rivals like the Land Rover Freelander TD4. This sits in the same road tax band, although emissions of 194g/km mean it sneaks in one band lower than the Volvo for company car tax. Fuel economy of 37.7mpg exactly matches the Volvo.

Neither car can beat the BMW X3 2.0d, however. With emissions of just 172g/km, it's in Band E for road tax and the 26% band for company car tax.

Automatic versions of the XC60 don't fare so well against the tax man, emitting 219g/km of CO2. The petrol model puts out 284g/km, putting it in the top bands for road and company car tax.

Although the first cars won't be delivered until the autumn, dealers are now taking orders. Prices start from £24,750.

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