Summer Statement 2020: summary

Four months after using his Spring Budget speech to announce the government’s first round of economic stimulants for supporting households and businesses through coronavirus, the chancellor yesterday cemented his status as the government’s Santa Claus, lavishing more gifts to Christmas 2020 and beyond.

It was branded as ‘A Plan for Jobs’ with a focus on supporting, creating and protecting UK employment. Here are some of the key measures announced by the Chancellor, and their implications for taxpayers.

STAMP DUTY

  • A temporary increase in the Nil Rate Band of Residential stamp duty land tax (SDLT) in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 and cut the tax due for everyone who would have paid SDLT.
  • Saves £15,000 on a transaction valued at £500,000.
  • House buyers will only face a bill for stamp duty if they are spending more than £500,000 on a main property

“JOB RETENTION BONUS” TO ENCOURAGE FIRMS TO RETAIN FURLOUGHED STAFF

  • A one-off £1000 payment to employers for every furloughed employee retained to the end of January 2021
  • Applies to workers earning over the Lower Earnings Limit of £520 per month on average between the end of CJRS and the end of January 2021

SIX-MONTH VAT CUT FOR RESTAURANTS, HOTELS AND ATTRACTIONS

  • A cut in VAT from 20% to 5% for the hospitality and tourism sectors from 15 July 2020 until 12 January 2021
  • Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered
  • Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected

APPRENTICES, TRAINEES AND WORK PLACEMENTS

  • A new grant of £2,000 will be made available to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1 August 2020 to 31 January 2021.
  • Employers who provide trainees with work experience will be awarded a further £1,000 per trainee.
  • Under the new “Kickstart Scheme”, £2bn has been allocated to fund 6-month work placements for people aged 16-24 and deemed at risk of long-term unemployment. Funding will cover 100% of National Minimum Wage for 25 hours per week plus associated National Insurance Contributions and automatic pension enrolment contributions.

EAT OUT TO HELP OUT

  • Scheme offers 50% discount for every restaurant diner, up to £10 a head, from Monday to Wednesday throughout August
  • Covers food and non-alcoholic drinks only
  • Applies at participating restaurants, pubs, cafes etc
  • Restaurant owners can claim the discount in full from the government via an online form to be circulated

GREEN HOMES GRANT

  • From September, homeowners will be able to apply for vouchers worth up to £5,000 per household for projects to make homes more energy efficient in England
  • Will match owners or landlords’ spend, £2 for £1 for most homes
  • Up to £10,000 per household fully funded for low-income households

We are doing everything we can to help our business community. If you would like to discuss how the changes or the coronavirus pandemic may affect you or your business, please do not hesitate to contact us on 020 8952 7717 or use our online enquiry form.

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