Land Rover has changed the classification for its Defender Station Wagon to offer businesses lower costs.

The 110 Station Wagon model ordered with a utility pack (a no-cost option), which replaces the rear side windows with panelled sides, changes from being a classed as passenger-carrying model to a light commercial vehicle.

It offers seating for five people and a covered, secure load space in the back with a payload in excess of 1,000kg.

As a result, company buyers can now claim back the VAT on the purchase rice, and it’s also beneficial for driver benefit-in-kind (BIK) tax – drivers will pay BIK based on a £3,000 flat rate which, for a base rate taxpayer, equates to a company car tax bill of £600 a year. VED costs will be £185 per annum.

However, to qualify for the savings, the vehicle must be used for commercial purposes.

John Edwards, UK managing director of Land Rover, said: “The change in classification for the Defender 110 utility wagon provides our business customers with a more flexible and cost-effective alternative to other double cabs.

“The utility pack ensures a more secure load space while not affecting the vehicle’s ability to transport five people comfortably – making it an ideal workhorse.”

Prices for the new addition to the Defender range, which is available in base, County and XS trim levels, start at £23,970 (£20,874 excluding VAT but including VED and a £55 first registration fee).