Chancellor’s Summer Statement: Key Points

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Chancellor’s Summer Statement: Key Points

July 13th, 2020, Legal Updates, News

As the United Kingdom is entering the second phase of the government’s economic response to the coronavirus outbreak, the chancellor delivers his summer statement.

Here is a summary of the key points.

Jobs

∙ Firms will be encouraged to retain furloughed staff by being provided with a so-called ‘job retention bonus’: a one-off payment to employers for every furloughed employee they retain to the end of January 2021.

∙ Support to firms offering apprenticeships will be provided. They will get a payment of £2,000 for each apprentice they take on.

 VAT cuts for the hospitality industry and tourism

∙ To support the industry, the value-added tax will be cut from 20% to 5% on food, accommodation and attractions from 15 July to 12 January 2021.

∙ Food and non-alcoholic drinks in restaurants, pubs and cafes will be affected.

∙ Hot takeaway food will be covered.

∙ Accommodation in hotels and B&Bs will be affected.

∙ The cuts will cover admission to attractions (such as cinemas and theme parks).

 Stamp Duty

∙ The stamp duty threshold in England and Northern Ireland will increase with immediate effect to £500,000 until 31 March.

∙ The following rates will apply for the duration of this period:

Property value Stamp duty payable by first-time buyers
up to £500,000 0
£500,001 to £925,000 5%
£925,001 to £1.5m 10%
over £1.5m 12%

∙ According to Rishi Sunak, this will help home buyers to save £4,500 on average.

If you have a question, please do not hesitate to contact James Cohen directly on jcohen@gscsolicitors.com or 0207 822 2257.

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