Home World News Martin Lewis explains changes made following gov's 'mini budget'

Martin Lewis explains changes made following gov's 'mini budget'

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Martin Lewis explains changes made following gov's 'mini budget'

Martin Lewis has been back at it again with his handy cash-saving tips and tricks, but this time, summarising key points from today’s (July 8) ‘mini budget’.

Chancellor Rishi Sunak announced a range of financial changes during his speech at the House of Commons – including VAT cuts, axing stamp duty and restaurant discounts.

Following the news of the Government’s latest plans to help the economy amid the coronavirus pandemic, Martin Lewis was on hand to summarise all that was said.

Taking to Twitter, the financial guru posted a video to explain the “consumer angles of the Chancellor’s summer statement.”

Splitting his key points into four categories – stamp duty cut , restaurant discounts, £5,000 green grant for homes and the furlough scheme – here’s a look at what he said.

Click the video above to watch his summary in full

Stamp duty:

“We heard that in England and Northern Ireland, stamp duty will not be paid until the end of March 2021 on homes worth up to £500,000.” He said.

“That’s a huge change. Previously, it was stamp duty you started paying at £125,000, unless you were a first time buyer. So for someone buying a £500,000 house, that’s £15,000 less that you pay.”

Explaining that he is still awaiting some confirmation on exact numbers following Mr Sunak’s speech, he went on to say: “It looks like what will happen is if you’re buying a house you won’t pay stamp duty if it costs under £500,000.

“For the next £425,000 – which is up to £925,000 – you pay five per cent on that amount . For amounts above that, so from £925,000 up to 1.5 million pounds, it’s 10 per cent. And from any amount above 1.5 million, you pay 12 per cent.

“So what that means is, if you are buying a house worth £600,000, which is £100,000 above the £500,000 limit, the rate then is five per cent – five per cent of £100,000 is £5,000 meaning you pay the £5,000, not the £20,000 you would have done before. And that happens immediately.”

Regarding when all this will come into play, Mr Lewis said: “Well usually stamp duty crystallises on completion, so if you’ve exchanged and not completed you should get the new rate – again I need to double check a little wiggle-room there but I think that’s right.”

He continued: “And it looks like there has been no change for the stamp duty on second homes, so there’s still that three per cent surcharge on all amounts if you are buying a second home.

“So you’ll get rid of the stamp duty under £500,000, but you’ll still have to pay the three per cent on top. So if you are buying a second home worth £400,000 you’re just paying the three per cent.”

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Restaurant discounts:

To encourage people to go back out again and visit their local restaurant, Mr Sunak revealed towards the end of his speech a free 50 per cent off in restaurants for customers in August.

Explaining this further, Martin Lewis said: “He made this announcement that if you go to a restaurant from between Monday and Wednesday in August, then up to £10 per person will be supplied by the government for a 50 per cent off.”

He added: “It is worth noting that Monday to Wednesday are the days when restaurant vouchers are usually given by restaurants anyway. So go on for a bit longer but Mondays to Wednesday are usually the core ones because that it when they are least busy.

“And normally we see restaurant vouchers on foods that are low cost but high perceived value – like pizza and pasta, ‘it doesn’t cost much to make but we are willing to spend to buy them’ – so 50 per cent off tends to be a bit easier.

“Now of course, you’ll probably still get the 50 per cent off in that and all other restaurants, but the government will be paying.”

Energy efficient grants:

“The next thing that was much-pegged yesterday are these new energy efficient grants, where the government will cover up to two thirds of the costs of an energy efficiency grant – so this could be insulation or double glazing etc.”

He continued: “And up to £5,000 grants are available for up to two thirds of the cost from September.

“We still don’t have the minute details, but certainly if you are planning on doing that sort of change to your house, you might as well wait now.

“For those on lower incomes, the full cost will be paid.”

Furlough job retention scheme:

Moving on to his last point, Mr Lewis said: “So for anyone who has been on furlough, if the company keeps you on board in a job paying I think it was £525 a month or more, then the government will give the firm a grant in January of £1,000 to try and make sure that people who are on furlough and coming off it stay in jobs.”

He added: “Of course as part of that he did say that the furlough scheme will be gone in October – there will be no extension. So, this is the scheme that’s replacing it.”

He ended by noting that: “There were many other job schemes and job announcements out there, I will leave people for whom that is their expertise to come up to you on whether that will work for businesses or not – my stuff is consumer finance.”

He also went on to quickly remind viewers that this was his instant reaction to the Chancellor’s speech, saying: “And again remember this is an instant reaction, having just heard the speech myself so I haven’t managed to fine check the details myself – that’s my interpretation of what I heard. And if stuff changes afterwards I do apologise, but I think most of it is probably pretty right.”

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