Job finding support service - £40 million to fund private sector capacity to introduce a job finding support service in Great Britain in the autumn. This online, one-to-one service will help those who have been unemployed for less than three months increase their chances of finding employment. Flexible Support Fund - increased funding for the Flexible Support Fund of £150 million in Great Britain, including to increase the capacity of the Rapid Response Service, which will also provide local support to claimants by removing barriers to work such as travel expenses for attending interviews. New funding for sector-based work academies - an additional £17 million this year to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people.
Comment The Chancellor stated that property transactions fell by 50% in May and that house prices have fallen for the first time in eight years. However, as the housingmarket is so important to the economy the Chancellor is hoping that the SDLT changes will drive growth and create jobs. The average stamp duty liability will apparently fall by £4,500 and almost nine out of ten people buying amain home this year will pay no stamp duty at all.
Other existing rules relating to SDLT remain unchanged, including:
• the 3% higher rate for purchases of additional dwellings applies on top of the revised standard rates above for the period 8 July 2020 to 31 March 2021 • companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge. Comment Both Scotland andWales have their own versions of SDLT, namely the Land and Buildings Transaction Tax and the Land Transaction Tax. The devolved governmentsmay well react to the Chancellor's announcement with their own plans. Green Homes Grant A new £2 billion grant will be introduced to encourage over 600,000 homeowners and landlords across England to make their properties more energy efficient. The grant will provide at least £2 for every £1 spent, up to a maximum of £5,000 per household or to fully fund energy efficiency measures up to £10,000 for those on the lowest incomes.
Creating Jobs The second part of the government’s plan for jobs is to support job creation. Two measures have been announced to support the residential housing market. Stamp Duty Land Tax: temporary reduced rates Reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive. SDLT will only be due on the amount paid for the property above £500,000. On 1 April 2021 the reduced rates will revert to the rates of SDLT that were in place prior to 8 July 2020. These rates apply whether the property is a first home or the person has owned property before.
Property or lease premium or transfer value
SDLT rate
Up to £500,000
Zero
The next £425,000 (the portion from £500,001 to £925,000) The next £575,000 (the portion from £925,001 to £1.5 million)
5%
10%
The remaining amount (the portion above £1.5 million)
12%
Higher rates for additional properties Property or lease premium or transfer value
Other measures to boost construction Some of the measures to boost construction are also designed to create ‘green jobs’. The announcements include: Public Sector Decarbonisation Scheme - public sector bodies including schools and hospitals will benefit from a £1 billion investment to fund energy efficiency and the upgrade to low carbon heating systems. Green Jobs Challenge - investment of up to £40 million will help to create and protect 5,000 jobs in England working on improving the natural environment, planting trees, clearing waterways and creating green spaces for people and wildlife.
SDLT rate
Up to £500,000
3%
The next £425,000 (the portion from £500,001 to £925,000) The next £575,000 (the portion from £925,001 to £1.5 million)
8%
13%
The remaining amount (the portion above £1.5 million)
15%
2
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