Volvo has opened orders in selected markets for a long-range plug-in hybrid version of the XC60, its best-selling model of all time, with up to 124 miles of electric range on Volvo's preliminary WLTP figures. Its fully electric sibling, the EX60, is listed on Volvo's UK website from £56,860, almost exactly the starting price of today's XC60 plug-in hybrid. For a company car driver the exact version and tax band matter. In 2028/29, the 1–50g/km company car benefit band becomes 18%, while an electric car is at 7%. A temporary HMRC easement can bring some qualifying plug-in hybrids with higher recorded emissions into that band; it does not automatically apply to every XC60. Here is what Volvo has announced, what each car costs in tax year by year, and what to check before you order.
What Volvo has announced
- XC60 long-range plug-in hybrid (15 September 2026): up to 124 miles of electric range, more than two and a half times that of the current plug-in hybrids, from a larger floor-mounted battery and a more powerful electric motor. The XC90 gets the same treatment, with up to 99 miles. The XC60 also gets a design update, and is still offered as a mild hybrid.
- Availability: Volvo says order books opened on 15 September in selected markets, with production starting this autumn. The UK primary sources checked on 30 October do not confirm UK prices or delivery dates for the long-range versions. The UK website still lists the current XC60 plug-in hybrid from £56,765, with up to 49.1 miles of electric range for the T6 AWD. Do not apply that price to the newly announced long-range car.
- EX60 (electric): the P6 Plus starts at £56,860. The current UK page gives preliminary WLTP ranges of up to 379.7 miles for the P6, 410.1 miles for the P10 AWD and 503.3 miles for the P12 AWD. The 503.3-mile figure is not for the entry-price P6. Volvo quotes around 16 minutes for 10–80% charging on the P6 at a suitable 350kW charger and P10 at 400kW, and around 19 minutes for the P12 at 400kW. Charging conditions and specification matter.
All of Volvo's range figures are preliminary. Real-world range will be lower in cold weather and at sustained motorway speeds.
How each car is taxed as a company car
The taxable company car benefit is the P11D value multiplied by the relevant percentage; the driver's income tax rate applies to that benefit. For a car in the 1–50g/km band, electric range affects the percentage until 5 April 2028. From 6 April 2028, that band has one percentage regardless of range.
| Type of car | 2026/27 | 2027/28 | 2028/29 | 2029/30 |
|---|---|---|---|---|
| Fully electric, such as the EX60 | 4% | 5% | 7% | 9% |
| Plug-in hybrid, 1–50g/km, 70–129 miles electric range (illustrative band, not a confirmed UK XC60 classification) | 7% | 8% | 18% | 19% |
| Plug-in hybrid, 1–50g/km, 40–69 miles electric range | 10% | 11% | 18% | 19% |
| Petrol or diesel, maximum benefit percentage | 37% | 37% | 38% | 39% |
Within the 1–50g/km band, 70–129 miles of electric range means 7% rather than 10% for 40–69 miles in 2026/27. Both become 18% in 2028/29. Check the exact UK car before assigning either band. Our 2028 plug-in hybrid change article explains the rates.
The temporary PHEV easement: HMRC can use a nominal 1g/km for a plug-in hybrid first registered from 1 January 2025 to 5 April 2028, tested under a newer regime than Euro 6d-ISC-FCM or Euro 6e, with recorded CO2 of at least 51g/km and electric range of at least one mile. All conditions must be met. If an eligible car is made available to an employee by 5 April 2028, transitional relief can continue until the arrangement is renewed or varied, or 5 April 2031, whichever comes first. After relief ends, the recorded CO2 figure applies. This is a company car benefit rule; it does not change the CO2 figure for vehicle tax or VAT. Neither the XC60 model name nor a preliminary European specification establishes UK eligibility.
A worked example over four tax years
For illustration, both cars below have a hypothetical £57,000 P11D value. The hybrid is assumed to remain in the 1–50g/km band, with 70–129 miles of electric range, throughout the period. This may be through its actual emissions or continuing eligibility for the easement. It is not a price or tax quote for a UK long-range XC60; a real quote needs its own P11D value and eligibility check.
| Tax year | Fully electric | Illustrative qualifying plug-in hybrid |
|---|---|---|
| 2026/27 | £912 | £1,596 |
| 2027/28 | £1,140 | £1,824 |
| 2028/29 | £1,596 | £4,104 |
| 2029/30 | £2,052 | £4,332 |
| Sum of the full-year figures | £5,700 | £11,856 |
The figures assume full tax years with no employee contributions or availability adjustments. Their sum is not a quote for a lease starting part-way through a tax year. In this example the plug-in hybrid costs the driver £684 a year more in tax now, and about £2,500 a year more once the 2028 change arrives. A 20% taxpayer pays half these amounts. The business pays Class 1A National Insurance on the same benefit, at 15% in 2026/27: £342 on the electric car and £598.50 on the plug-in hybrid this year, rising to £1,539 on the plug-in hybrid in 2028/29 if the rate stays at 15%. A three or four-year lease starting in 2027 would spend most of its life under the new rates. Our company car tax guide has every band to 2030.
Running costs beyond company car tax
- Expensive Car Supplement: the currently priced UK EX60 and XC60 plug-in hybrid exceed the thresholds, £50,000 for an electric car and £40,000 for a plug-in hybrid, so each pays the supplement for five years from the second time it is taxed: £440 in 2026/27. Budget 2026 announced an RPI increase in vehicle tax rates from 1 April 2027, subject to legislation; later cash rates may change. The UK price of the new long-range XC60 still needs confirmation. Read how the threshold works. On contract hire the funder usually taxes the car and recovers the cost through the rental.
- Pay-per-mile tax from April 2028: under eVED, electric cars are due to pay 3p a mile and plug-in hybrids 1.5p a mile, on top of vehicle tax. It is proposed and not yet law: what eVED means on a lease.
- Charging at home: Budget 2026 announced an extension of the temporary 0% VAT rate for qualifying domestic electricity through 30 June 2027, with secondary legislation to follow. This would also cover qualifying home-charging electricity: what that means for home charging. A plug-in hybrid only gets its low running costs if it is charged regularly.
What it means for you
- Company car drivers: a lease running beyond 5 April 2028 crosses a material change. In 2028/29, an electric car has a 7% benefit percentage and a car in the 1–50g/km band has 18%. Confirm whether the exact hybrid falls in that band and how long any easement continues.
- Directors and finance leads: Class 1A National Insurance follows the same percentage, so the gap shows up in the employer's costs too.
- Drivers who cannot charge easily: a plug-in hybrid only delivers its low running costs when it is charged most days. If you cannot charge at home or at work, neither car is at its best, so check your charging first.
What to check before you order
- UK figures for the long-range XC60. Ask for the UK CO2 figure, electric range, emissions standard, registration date, P11D value and delivery date. Confirm any easement and its expected end date before assigning a tax band.
- How long you will keep the car. Compare the applicable benefit percentage in every tax year of your lease, including any change when easement relief ends. The 18% figure is the 2028/29 hybrid band, not the electric-car rate.
- Your journeys. Volvo's current preliminary EX60 range figures span up to 379.7 to 503.3 miles, depending on powertrain. Match the exact version to your regular journeys and allow for real-world conditions. A plug-in hybrid only keeps its running costs down if it is charged most days, so check where you would charge either car.
- Options. Options raise the P11D value, and therefore the tax, on either car.
- VAT. A VAT-registered business leasing a car with private use can normally recover 50% of the VAT on the rental.
If you would like the EX60 and the XC60 compared on your own mileage, term and tax rate, talk to our team on 01752 429950 or send an enquiry. You can also browse Volvo EX60 leasing, Volvo XC60 leasing, Volvo leasing and business car leasing.
Sources, checked 30 October 2026: Volvo Car UK, XC60 and XC90 long-range launch, 15 September 2026; Volvo Cars UK EX60 and XC60 plug-in hybrid pages and EX60 MY27 Edition 1 price list (P6 Plus entry price); HMRC current benefit percentages and PHEV easement and transition; HM Treasury Budget 2026 rates and tax measures; GOV.UK vehicle tax rates. Manufacturer figures are preliminary and may change. Tax treatment depends on individual circumstances and may change. This is general information, not tax advice.
Intelligent Vehicle Finance is a credit broker, not a lender, and receives a commission from the lender or funder when an agreement completes. A trading style of XLCR Vehicle Management Ltd, authorised and regulated by the Financial Conduct Authority (FRN 315268). Subject to status and availability.
By the Intelligent Vehicle Finance editorial team. Last updated: 30 October 2026.