Land Rover has announced a pricing initiative for UK customers to avoid the VAT increase in January 2011.

The offer, which applies to new-build retail orders before 31 December 2010, means customers will avoid the increased VAT rate if their vehicle is registered and delivered between 4 January 2011 and 31 March 2011. The 2.5% VAT difference will be jointly funded by Land Rover and participating dealerships.

"Protecting against the VAT increase means that customers can order with confidence, in the knowledge the January tax hike will not affect their vehicle purchase," said Land Rover UK managing director John Edwards. 

The VAT move comes against a backdrop of Land Rover UK sales up 30% year-to-date, with increased demand across the range.

The automaker says its Land Rover Freelander 2, built at Halewood on Merseyside, continues to be its best-selling model globally, with sales up year-to-date by nearly 40%.

Land Rover created 275 new jobs at the company's manufacturing plant in Solihull, where the Defender, Discovery 4, Range Rover Sport and Range Rover are manufactured.

New model pricing for January 2011 has also been announced, including 20% VAT, along with what the manufacturer says is a "pricing realignment" for the Freelander 2 range.