Citroën has revised diesel versions of its C3 Picasso to bring them under the 120g/km threshold and reduce their BIK tax by five percentage points.
The move should make the car more popular with company car drivers, and also brings about a 2.7mpg improvement in fuel consumption and £85 annual reduction in road tax.
VTR+ and Exclusive models using the 90bhp 1.6 HDi diesel have been re-homologated with CO2 emissions now at 119g/km instead of 125g/km.
It makes the VTR+ cheaper for company car tax than the 123g/km VT model which attracts a BIK rate of 18 per cent of its P11D value, compared with 13 per cent for the higher spec model.
For example, a standard rate taxpayer choosing the 123g/km 1.6 HDi VT would be liable to pay BIK tax at £458 a year, based on its P11D value of £12,720 and company car tax band of 18 per cent.
However, the same driver choosing the more expensive 119g/km 1.6 HDi VTR+ would face an annual BIK tax bill of just £362, based on its P11D value of £13,905 and company car tax band of 13 per cent.
Drivers in the more luxurious Exclusive model also face lower tax bills than in the VT model. Based on its P11D value of £15,005 and 13 per cent tax band, the annual BIK tax for a standard rate tax payer would be £390.
VTR+ and Exclusive models are now offered with an option pack that includes integrated Bluetooth, as well as a USB socket for plugging in portable MP3 players directly into the car's audio system with menu navigation and music selection managed via the steering-mounted and dashboard radio controls, with song titles displayed on the audio screen.