BMW’s small off-roader has been given a subtle revamp, with new headlights, bumpers and tweaks to the interior joined by standard kit improvements that see the SE level gain BMW’s Business Navigation system, a powered tailgate and heated front seats.

The entry-level 150hp 18d SE is the only rear-wheel drive model in the range, and offers CO2 of 131g/km – just the wrong side of the capital allowance writing-down boundary of 130g/km.

The 18d in SE trim is 12g/km more efficient and £1985 cheaper than the 20d 4WD that will be the most popular engine in the range, which means a nut unsubstantial £36 per month difference to BIK rates for company car drivers.

The X3 retains best-in-class status for handling, but the 150hp engine isn’t the most refined, and the volume cranks up significantly when trying to make serious progress. The 17-inch wheels on the SE also don’t have the visual appeal of those fitted to the pricier M-sport and new X-line trims.

This 18d SE stacks up well for running costs as there’s no equivalent Audi due to all Q5 models being 4WD. The extra £590 the 150hp 4×4 Q5 costs, plus the 23g/km emissions deficit and 4.5 percentage point RV disadvantage means it loses out to the BMW by 5.6ppm. The X3 18d is also 4.8p less than its 190hp 4×4 X3 20d sibling, and while Land Rover’s new Discovery Sport doesn’t have an engine below 150hp, it can’t get close for CO2 or RV.

The X3 is still the best all-rounder in the small off-roader class, and RVs of just under 50% combine with great dynamics, practicality and improved kit levels to offer a compelling package, although the more powerful and higher-specced versions feel a noticeable step up from this entry 18d SE.

P11D price £30,810
Model price range £30,810-£46,060
Residual value 49.0%
Depreciat­ion £15,710
Fuel £6410
Service, maintenance and repair £2525
Vehicle Excise Duty £390
National Insurance £2934
Cost per mile 59.9p
Fuel consumption 56.5mpg
CO2 (tax) 131g/km (22%)
BIK 20/40% per month £113/£226
Service interval variable miles
Insurance (1-50) group 26
Warranty 3yrs/unlimited miles
Boot space (min/max) 550/1600 litres
Engine size/power 1995cc/150hp
Top speed/0-60mph 121mph/9.5secs
On sale October 2014