The Chancellor’s Summer Statement

In his summer statement on 8 July, Chancellor Rishi Sunak laid out various measures to stimulate economic growth.

His measures include:

  • the Eat Out to Help Out Scheme
  • a VAT reduction
  • an increase in the Stamp Duty Land Tax threshold

Eat Out to Help Out Scheme

Throughout the month of August, all participating establishments will offer diners 50% off their meals and non-alcoholic drinks. This offer, made available Monday to Wednesday, will primarily include restaurants, bars and cafes.

VAT Reduction

From 15th July till 12th January 2021, Value Added Tax will be cut from 20% to just 5% for any eat-in or takeaway food and non-alcoholic drinks for certain businesses. The qualifying businesses include restaurants, cafes, pubs, hotels, B&Bs, camping and caravan sites, cinemas, park and zoos.

Stamp Duty Land Tax (SDLT)

The Government have introduced, with immediate effect, an increase to the SDLT threshold until 31st March 2021. The threshold under which no SDLT will be paid upon the purchase of a main home will increase from £125,000 to £500,000.