Order books are now open for Volvo's XC90 'twin engine' plug in hybrid model.

The XC90 T8 Twin Engine is powered by a two-litre, four-cylinder supercharged and turbocharged petrol Drive-E powerplant with an electric motor.

The result is a total output of 407hp, a combined fuel economy of up to 134.5mpg, with CO2 emissions of 49g/km (NEDC driving cycle).

With a pure electric range of up to 26 miles, buyers will receive the Government's Plug-In Car Grant (PICG) of £5,000 towards the purchase price of the vehicle which stands at £63,650.

Following the changes which came into force on 1 April 2015, the XC90 T8 Twin Engine is one of the few cars in its segment to fall below the reduced 75 g/km capital allowance threshold. It is therefore eligible for a 100% first year allowance, meaning a company can offset the entire cost of purchase against its profits in the year of purchase.

For employees, or directors, the car is subject to a 5% BiK banding, which equates to a monthly income tax liability of £53.04 (£636.48 p.a.) for a 20% taxpayer, and £106.08 (£1,272.96 p.a.) for those paying income tax at the higher rate of 40%.

Selwyn Cooper, head of business sales, said: “Employee wellbeing, affordability and a low carbon footprint are key priorities for businesses when procuring vehicles, which makes the XC90 T8 Twin Engine a highly compelling proposition for corporate customers. Combined with premium styling, luxurious surroundings and technological innovation, this model offers a high value and competitive package which is ideal for a range of company car users, spanning executives to chauffeur drivers. This model is already proving popular, and initial sales forecasts are set to be exceeded.”

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