Stamp Duty changes and Furlough Bonus scheme announced by Sunak

Chancellor of the Exchequer Rishi Sunak has announced that there will be no stamp duty on homes selling for £500,000 or less; this temporary holiday will last until the end of March 2021.

The threshold for 'no stamp duty' therefore rises with immediate effect from £125,000 to £500,000.

The Chancellor claims that this means nine out of 10 main homes sold between now and the end of March, will be exempt from stamp duty.

Data released by the Treasury this afternoon confirms that additional home stamp duty surcharges would remain as before. 

Sunak has also confirmed that the existing Coronavirus Job Retention Scheme - including the furlough provisions - will be wound down between August and October. But there will be a new Jobs Retention Bonus for employers, including agencies, who keep ex-furloughed staff in work until the end of January 2021. The bonus will be £1,000 per employee.

There will also be a bonus scheme for companies that hire apprentices aged 25 and over, and a £2 billion scheme to improve the energy efficiency of homes, including those owned by landlords.

On the wider outlook for the economy, Sunak has told MPs the country faces "profound challenges" and says "although hardship lies ahead, no one will be left without hope." 

The Chancellor says there will be a full-scale Budget, more wide-ranging than today's announcement, in the autumn.

Sunak's announcement regarding stamp duty relates only to England and Northern Ireland.

The Scottish Government sets the equivalent north of the border, called Land and Buildings Transaction Tax.

In Wales buyers pay Land Transaction Tax, levied by the Welsh Government.

In the past, both of these devolved administrations have quickly fallen in line with stamp duty changes made by the Westminster government relating to England and Northern Ireland.