Highlights from the Chancellor’s Financial Statement

The Chancellor, Rishi Sunak, delivered a Summer Economic Update earlier this afternoon.

The key tax measure announcements include: 

• Confirmation that the Job Retention (furlough) Scheme will close, as scheduled, at the end October.
• A new Job Retention Bonus for employers of £1k for every employee brought back from furlough and still employed in January 2021.
• A ‘kickstart’ scheme to encourage employers to create new jobs for 18-24 year olds: employers will be paid up to £6,500 to cover salary costs and overheads for six months. Employees will work 25 hours per week and will be paid the National Minimum Wage.
• An increase in the Stamp Duty Land Tax (SDLT) threshold for property purchases to £500k, until 31 March 2021. This takes effect immediately.
• A reduction in VAT for the hospitality and tourism sectors from 20% to 5%, from Wednesday 15 July until 12 January 2021.
• ‘Eat out to Help Out’ vouchers for all – 50% discount (up to £10 each) on meals purchased Monday to Wednesday in August 2020 at participating restaurants, pubs and cafes. Providers can apply to participate from next week: cash will be returned to them within eight days.

We will provide a more detailed summary tomorrow. Please get in touch with one of our Tax Partners or your usual haysmacintyre contact if you have any queries.