Delcam urges manufacturers to maximise tax benefits

Delcam UK general manager Steve Creron believes this could significantly reduce the net costs of investment, since the tax savings could be up to £20,625, based on the current marginal corporate tax rate. 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 can qualify for 100% deduction when calculating taxable profits. CAD/CAM software and associated computer hardware is normally classed as qualifying expenditure, but the limit will be reduced to £25,000 per annum from April 2012. Hence the urgency. "We believe that any investment in Delcam software will boost the productivity and profitability of our customers," comments Creron . "The opportunity to reduce their tax bills is a welcome additional benefit, provided that they purchase the software during their current financial year."