Chancellor Rishi Sunak reveals stamp duty cut and jobs bonus scheme
Written by Gavin on 8th July 2020
Chancellor Rishi Sunak has unveiled a cut in stamp duty and a bonus scheme for firms retaining staff as part of his economic recovery plan.
In his summer economic update to the House of Commons, the chancellor warned the UK is facing “profound economic challenges” from the coronavirus crisis.
As part of his action plan to boost the economy and kick-start the housing market, Mr Sunak told MPs that he would increase the threshold for paying stamp duty on property transactions to £500,000.
The temporary stamp duty cut will take effect immediately and will last until 31 March next year.
The chancellor estimated the average stamp duty bill will fall by £4,500 due to the change, adding: “Nearly nine out of 10 people buying a main home this year will pay no stamp duty at all.”
Telling MPs he is ready to “act with a plan for jobs”, Mr Sunak also announced he will pay companies £1,000 for each employee they bring back from furlough.
He said the scheme could cost up to £9bn if every furloughed employee was retained by their firms, telling company bosses: “If you stand by your workers, we will stand by you.”
Announcing the bonus scheme, the chancellor said: “If you’re an employer and you bring back someone who was furloughed – and continuously employ them through to January – we’ll pay you a £1,000 bonus per employee.
“It’s vital people aren’t just returning for the sake of it – they need to be doing decent work.
“So for businesses to get the bonus, the employee must be paid at least £520 on average, in each month from November to the end of January – the equivalent of the lower earnings limit in national insurance.”