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Impact of today's budget on UK letting and management agents

CFP Software

Leading up to the budget it was widely speculated that the rate of Capital Gains Tax would be increased up to 40% or even 50%. The increase as from midnight tonight up to 28% for higher rate tax payers is therefore not as stringent as many commentators predicted.

As widely predicted the rate of VAT will increase to 20% but not until January 4 2011. There will be a direct benefit to the furnished holiday lets sector though the scrapping of proposals to abolish tax benefits under the FHL rules, which will be well received by people in that market.

The Chancellor also announced a wide range of public spending cuts. These measures will directly impact on the UK’s lettings and management agents.

Peter Everett, General Manager at CFP Software commented:

“Today’s budget probably bringsbetter news for letting agents than they expected.

“The increase in Capital Gains Tax is not as stringent as many predicted and with the rise taking effect immediately there will not be an opportunity for landlords to try to cash in an attempt to avoid higher tax bills. There should therefore be no ‘knee-jerk’ reaction in the market place. They may even be some landlords who decide to re-evaluate their position and withdraw their properties for sale and re-let instead as they expected a 40%+ rate.

“Longer term though it may discourage new ‘buy-to-let’ landlords from entering the market although we need to remember that it wasn’t that long ago that the rate of CGT was at 40%.

“The change in the VAT rate on January 4 2011 will mean that all agents will need to update their software systems to ensure accurate accounting beyond that date. CFP Software went through all of this at the beginning of the year when the VAT rate went back up to 17.5% updating over 2,500 customers and rest assured we will have an automated software update ready for the deadline on January 4.”

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"I had been using CFP for about ten  years  with a previous employer so it was the natural choice of software for me when I started my own agency. I recently had a computer failure which meant I had to reload Winman andall the associated data.  The help I needed was clear, precise and readilyaccessible. 

The software is my ‘unpaid assistant’ and I would be lost without it"

Yvette Creighton, Rosette Residential Lettings

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"It is about five years since we installed CFPWinman. Managing some 500 plus properties we would be utterly lost without the comprehensive property management system that CFP gives us.

With the continuous development of the product coupled with excellent system and customer support, we would wholeheartedly recommend CFP to any agent, even our competitors"

Peter Newman - Partner, Arena Lettings

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"I spoke with a few companies, but CFP won my business hands down! Sara has been brilliant and has kept in touch with me since I started building my new business.

After speaking with Hannah today, I couldn't be more pleased that I went with CFP, she was very informative and polite. Thank you very much to Sara and Hannah! 

Selina Thomas – Director, Selina's Lettings

Selina Thomas, Director at Selina's Lettings

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"CFP Winman has been a fantastic choice.Their product is slick and efficient. It helps our small business stay in control of communications from clients, contractor payments, tenant deposits and landlord statements.Their after-sales support is superb and they resolve our queries quickly.  A definite asset to the smooth operation of our company, and I would highly recommend it"

Mark Hastie, Director at Alba Residential

Disclaimer: The Institute of Chartered Accountants in England and Wales has accredited CFPwinMan v4, from CFP Software, under the terms of its Accreditation Scheme. Purchasers should ensure that the software, its security features and related support meet their own specific requirements, as the Institute will not be liable for any damage whatsoever, incurred by any person, occasioned by the use of the software, or any related products or services howsoever caused.