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08th July 2020

Chancellor's Giveaway Budget

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Today Chancellor Rishi Sunak delivered his summer statement, which laid out plans for the Country to recover, economically, from the Coronavirus. We list out below how this might affect you. Key points:

  • Good news for buyers – and also for those downsizing or selling a house in an estate - Stamp Duty savings until next 31 March by raising threshold from 125,000 to 500,000. More details will be needed about whether this will also help buyers of second homes and buy-to-lets, who currently suffer from the extra 3% levy, although this seems unlikely and the devil is in the detail. As this takes effect immediately, there is no need to slow down on any purchase.
  • Eating out is encouraged, but only midweek: On Monday to Wednesday in August certain venues will offer a 50% “eat out “ reduction in your food bill, although only at up to £10 per head, so it won’t help much if your tastes run to The Ivy.
  • Vat cut from 20% to 5% on hospitality - so socially distanced eating out and holidaying is encouraged (but not drinking!)
  • £1,000 retention bonus for every furloughed employees brought back (and retained until end January and earning at least £520 per month in the latter months) – this seems designed to help those who are sure they will need the workers by November but cannot afford the furlough contributions during the next few months.
  • Help for the young unemployed through trainee bonuses plus paid 6 month placements
  • Grants for energy-efficient house upgrades
  • Public sector spending and help to environmental charities – to create jobs and encourage the environmental improvements seen during lockdown.

If you wish to speak to one of our Solicitors to discuss any of the above then please contact us here.