Highlights from the Chancellor’s Financial Statement

8th July 2020

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.

Katharine Arthur

Partner, Head of Private Client
+44 20 7969 5610
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