(Tue 20 Jan 09)

Lexus has revised the turbo diesel engine in its IS 220d so that it uses less fuel on the combined economy cycle and costs less to tax thanks to the reduced CO2 emissions.

The economy figure has improved from 46.3mpg to 50.4mpg, while the CO2 rating drops from 163g/km to 148g/km. The second statistic means that the IS 220d comes down from VED Band D to Band C under the current system, saving £25 per year, but more importantly for business customers the Benefit In Kind tax rate drops to 20%, and the Corporation Tax offset of the capital cost also moves to 20%.

Performance isn't affected: the 175bhp engine still gives a maximum speed of 135mph and a 0-62mph time of 8.9 seconds, assuming that the car has the standard six-speed gearbox.

Prices are also the same as before, at £22,015 for the SE, £24,470 for the SE-I and £26,585 for the SE-L. The new cars are available to order now, and delivers are due to start in the middle of March.

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