Subaru To Absorb January 2011's VAT Increase

Subaru UK will not be passing on January 2011's VAT (Value Added Tax) increase to the majority of its customers. Rather, the All-Wheel-Drive Japanese manufacturer is to absorb the 2.5 per cent rise in sales duty itself in most cases.

This means that prices for 80 per cent of the Subaru range will remain unchanged for 2011. For example, the Subaru Forester SUV range will still start at £21,295 for the entry-level 2.0X and rise to £28,995 for 2.0D Subaru Forester XS NavPlus. The Subaru Legacy Tourer range will cost from £24,795 (2.0D S) to £29,295 (2.5i SE Navplus Lineartronic). Crossover Subaru Outback models will continue to be priced at £26,795 for 2.0D S, rising to £35,795 for the top-of-the-range 3.6R.

Elsewhere, the recently launched 2011MY Subaru STI WRX stays at £32,995 (for both the four and five-door) and the last remaining few Subaru Cosworth Impreza STI CS400 models are still priced at £49,995.

Subaru UK Marketing Director, Kenyon Neads, commented: "For the vast majority of our customers the decision not to pass on the VAT rise is great news, particularly anyone in the market for a Forester, Legacy, Outback or WRX STI Type UK."