Delcam urges UK manufacturing companies to maximise tax benefits
Delcam is encouraging manufacturing companies to make the most of changes in the Annual Investment Allowance by investing in new or additional CADCAM software during their current financial year. This could significantly reduce the net costs of their investment since the potential tax savings could be up to £20,625 based on the current marginal corporate tax rate.
The Chancellor, George Osborne, announced changes to the Annual Investment Allowance in his emergency budget on 22 June 2010. For the current fiscal year, qualifying capital expenditure of up to £100,000 by a business can qualify for 100% deduction when calculating taxable profits. CADCAM software and the associated computer hardware will normally be classed as qualifying expenditure. This limit will be reduced to only £25,000 per annum from April 2012.
Sole traders and partners that are paying higher-rate tax have the potential to reduce their net investment by even more as they can save tax at 40%, or even 50%, on their expenditure.
"We believe that any investment in Delcam software will boost the productivity and profitability of our customers,” commented Delcam UK General Manager, Steve Creron. "The opportunity to reduce their tax bills is a welcome additional benefit that they can enjoy, provided that they purchase the software during their current financial year.”For more information or to take advantage of this offer, click here
31 October 2011