Last month’s Summer statement from the Chancellor badged as “A Plan for Jobs” announced a number of additional supports and measures aimed at the retention of as many jobs as possible and assistance for the UK hospitality and housing markets. You can read our NI Tax Committee Chair’s reaction to the statement on our website and see GOV.UK.

The key announcements last month were:-

A jobs retention bonus will be paid to employers to cover the period from 1/11/2020 to 31/1/21 – this will comprise a £1,000 bonus per furloughed employee who is returned to work with payments to be made from February 2021. See our news story later on this.

Stamp duty land tax zero per cent threshold

The stamp duty land tax residential properties zero per cent threshold in England and NI was raised to £500,000 (from £125,000) from 8/7/2020 until 31/3/2021.

The following guidance has been published/updated as a result of this change:-

• Stamp Duty Land Tax: temporary reduced rates
• Stamp Duty Land Tax: higher rates on purchases of additional residential properties
• Stamp Duty Land Tax rates from 1 December 2003 to 3 December 2014
• Stamp Duty Land Tax: relief for first time buyers – guidance note
• Stamp Duty Land Tax rates from 1 December 2003 to 3 December 2014
• Stamp Duty Land Tax: linked purchases or transfers
• Leasehold sales on Stamp Duty Land Tax
• What to include in a Stamp Duty Land Tax calculation
• Stamp Duty Land Tax relief for land or property transactions
• Stamp Duty Land Tax: shared ownership property
• Stamp Duty Land Tax: transfer ownership of land or property

VAT on hospitality

VAT on hospitality (food only but not alcohol (eat-in or hot takeaway food from restaurants, cafes and pubs), accommodation (hotels, B&Bs, campsites and caravan sites) and attractions (cinemas, theme parks and zoos)) will be cut from 20% to 5% from Wednesday 15 July 2020 until 12 January 2021.

HMRC has published a Revenue and Customs Brief setting out the measure in detail. HMRC has also published the following related guidance: VAT on admission charges to attractions; and VAT: reduced rate for hospitality, holiday accommodation and attractions.

Eat Out to Help Out Scheme

From 3 August 2020, the Eat Out to Help Out Scheme allows diners 50 per cent off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes, and other establishments that have registered.

Businesses need to register, and can do so through a website, which opened in mid-July. Each week in August, businesses can then claim the money back, with the funds in their bank account within 5 working days. Detailed guidance on the Eat Out to Help Out scheme, and registration details for restaurants and establishments is now available.