Land Rover and participating dealers will be absorbing the VAT change on model orders placed before December 31 this year as part of a new sales initiative.

The 2.5% VAT difference will be jointly funded by Land Rover and participating dealerships.

The offer means customers can avoid the increased rate of 20% VAT if their vehicle is registered and delivered between January 4 and March 31 2011.

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

"This move demonstrates that the interests of our customers continue to be at the heart of our business strategy."