Following on from the announcements made by the Chancellor in his summer statement, HMRC have now provided further detail behind some of the main proposals:
It has now been confirmed that the reduction in SDLT to 0% for residential property purchases up to £500,000 applies only to those buying a home to live in.
Second homes, investment properties and residential properties bought by companies will still be subject to the 3% supplement. Click for further details
Reduced rate of VAT in the hospitality & accommodation sectors
HMRC have now provided guidance on the scope of the reduced rate which applies from next Wednesday, 15th July, until 12 January 2021.
The reduced rate applies to food and non-alcoholic drinks supplied in a restaurant, café, pub or similar, and also to hot takeaway food and hot takeaway non-alcoholic drinks.
It also applies to most supplies of accommodation including hotels, campsites and holiday lets.
There is no obligation to pass the VAT reduction on to the consumer. It is a commercial decision on whether to do this; a reduced price may attract customers, but social distancing imposes additional costs and inefficiencies on businesses in this sector. Click for full details
VAT on deposits in this sector is complex. Please do get in contact with us for advice if this issue affects your business.
We will be hosting a webinar next week to run through the recent government updates which will provide the opportunity to ask questions. See details
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