Lexus is applying the 2.5 per cent reduction in VAT to all its vehicles and options, ensuring customers enjoy the benefit of the new rate without delay. From 1 December the new 15 per cent tax level will be included in Lexus prices, with on-the-road vehicle pricing also taking into account the impact of the new rate on delivery and number plate charges.

The reduction makes Lexus models even more compelling value for money. For example, the recently launched new 2009 IS range, which already boasted lower prices and higher specifications than the 2008 model, now costs even less: the new IS 220d SE is priced at just £22,015 on-the-road, compared to £23,192 for the previous IS 220d .

Elsewhere the hybrid power RX 400h becomes an even more affordable proposition in the luxury SUV market, with OTR prices now starting at £35,505 – down £768 – for the entry level model.