Volvo is the first premium SUV car maker to get its model below the 160g/km emission tax break.

The tax break – coming into effect this April – affects the corporation tax treatment of the vehicle. Cars below 160g/km will benefit from better writing down allowance treatment than those vehicles above it.

In addition, for cars taken on contract hire with emissions below 160g/km, the whole of the contract hire rental can be set against a company’s taxable products.

The Volvo XC60 DRIVe features front-wheel drive for the first time. It also has Volvo’s improved new 2.4D diesel engine.

Volvo has also introduced new low-emission DRIVe models with stop-start technology.

These include the C30 coupe, S40 saloon and V50 estate.

Further information

For more details about the tax changes, read our Special Report Capital allowances: should you still buy high emission cars?

XC60 DRIVe crossover emits 159g/km CO2