Summer Statement July 2020

On 8th July 2020, Chancellor has delivered his summer economic plan to help the UK economy recover from the impact of the coronavirus pandemic. Here is a summary of the main points:

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 £520 per month, UK-wide

Six-month VAT cut for restaurants, hotels and attractions

 Value added tax cut from 20% to 5% from 13 July to 12 January 2021 for selected areas
 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

Stamp duty cut

 The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000
 Applies from 8 July until 31 March 2021

Discount on restaurant meals in August

 “Eat out to help out” scheme offers 50% discount for every 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