Volvo XC60 review - MPG, CO2 and Running Costs

Existing XC60 owners will benefit from big improvements in the way the new model drives, but steeper prices mean you certainly pay a premium for it. The cost of the entry-level model has risen by nearly £4,000, while the range-topping T8 Twin Engine models are touching £65,000.

It’s still cheaper and better equipped than many rivals, while improved residual values should soften the blow for private buyers swapping out of an PCP deal on the old XC60 and into a similar arrangement on the new car.

The more frugal D4 diesel comes with an entry price of around £38,000 for the nicely-equipped Momentum model, and emits 129g/km of CO2. That puts it in the 33 per cent Benefit in Kind (BiK) tax bracket for company car buyers.

The more powerful B5 diesel in R-Design trim emits 142g/km which puts it into a 36 per cent BiK tax bracket. The B5 petrol in R-Design emits 160g/km also slotting it into the 36 per cent BiK tax bracket.

The XC60 also gets the T8 Twin Engine plug-in hybrid powertrain, featuring a 2.0-litre petrol engine and electric motors. Company drivers will find this especially appealing. It ups the excitement level with 385bhp dropping the 0-62mph time to 5.4 seconds, while the claimed CO2 emissions plummet to 56g/km leaving BiK at just 19 per cent. The list price is steep, but if your company will pay that, it should save you a small fortune in tax.