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.
∙ 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.
∙ 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).
∙ 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%|
∙ 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 [email protected] or 0207 822 2257.
© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.
For every part of your life and business, talk to GSC
GSC Solicitors LLP
31-32 Ely Place, London EC1N 6TD
DX: 462 London/Chancery LN (View on map)