BMW M5 becomes a company car tax-friendly plug-in hybrid

BMW has pulled the wraps of its seventh-generation M5, which adopts a plug-in hybrid engine for the first time.

Based on the latest 5 Series platform, the M5 is the performance flagship with a power output of 727PS and 1,000Nm of torque.

With an electric range (WLTP) of 42 miles and CO2 emissions of less than 50g/km, the new M5 sits in the 8% benefit-in-kind tax band.

Prices are expected to start at around £110,000, meaning a 40% taxpayer could run an M5 for less than £300 per month.

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The M5's powertrain is taken from the firm's existing XM model. It uses a 4.4-litre turbocharged V8 petrol engine, combined with an electric motor and 18.6kWh battery.

Power is chanelled to all four wheels, via an eight-speed automatic gearbox and BMW's xDrive system. A special setting allows all the power to be sent to the rear wheels, if desired.

Acceleration from 0-62 mph takes 3.5 seconds, which is 0.3 seconds quicker than the electric i5 M60.

Drivers can control the hybrid powertrain using a new control panel in the car's centre console. It provides the option of electric only and hybrid modes.

When the car's battery is depleted it can be recharged at up to 7.4kW - taking around three hours from a home wallbox.

Official fuel consumption is rated at 166 - 176mpg and BMW also quotes a figure of 27mpg for if the car is driven with a discharged battery.

The new BMW M5 will make its public debut in July, at the Goodwood Festival of Speed. The car's official launch is billed for November and BMW says an estate version will be offered alongside the saloon.