Stamp duty holiday 2020: how long will the property tax cut be in place?

The government increased the stamp duty threshold to £500,000 in July

Rishi Sunak is reprotedly set to increase the stamp duty tax threshold

The government exempted the majority of home buyers in England and Northern Ireland from paying stamp duty tax in July

Chancellor Rishi Sunak announced the cut last month, stating: "Right now, there is no stamp duty on transactions below £125,000.

"Today, I am increasing the threshold to £500,000. This will be a temporary cut running until March 31 2021 - and, as is always the case, these changes to stamp duty will take effect immediately.

"The average stamp duty bill will fall by £4,500. And nearly nine out of 10 people buying a main home this year, will pay no stamp duty at all."

The measure is a temporary one and has been billed a “stamp duty holiday”.

When will the new measures come into force?

Mr Sunak said that the measure would be in place until March 31, 2021.

Which other measures did the Westminster government introduce?

Mr Sunak also unveiled that VAT was to be cut from 20% to 5% on food, accommodation and attractions.

The Chancellor also implemented measures to encourage customers to return to restaurants, cafes and pubs, introducing the Eat Out Help Out discount.

He said: "Meals eaten at any participating business, Monday to Wednesday, will be 50% off, up to a maximum discount of £10 per head for everyone, including children.”

A VAT cut for the hospitality and tourism industry was also announced. He unveiled that VAT was to be cut from 20% to 5% on food, accommodation and attractions.

In another widely anticipated move the government revealed an incentive for businesses to hire trainees.

Mr Sunak said: "We'll pay businesses to hire young apprentices, with a new payment of £2,000 - and we'll introduce a brand new bonus for businesses to hire apprentices aged 25 and over, with a payment of £1,500."