10 July 2020

SDLT and VAT circular email 9th July

SDLT: while the zero rate up to £500,000 applies to main residential properties for second (or more) properties (such as buy-to-lets) or for acquisitions by limited companies they will remain liable for the 3% additional charge.

VAT temporary 5% rate: The remainder of this email provides some detail for the hospitality and similar who will benefit from the temporary 5% rate or the Eat Out to Help Out scheme.

Whilst reluctant to regurgitate what is in the national media some points from the government guidance.

VAT : The 5% reduced rate of VAT applies to certain supplies relating to:
- hospitality
- hotel and holiday accommodation
- admissions to certain attractions
The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 12 January 2021.

Hospitality
The supply of food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, cafe or pub also supplies of hot takeaway food and hot takeaway non-alcoholic drink

Hotel and holiday accommodation
- supply sleeping accommodation in a hotel or similar establishment
- make certain supplies of holiday accommodation
- charge fees for caravan pitches and associated facilities
- charge fees for tent pitches or camping facilities

Admission to certain attractions
Charging a fee for admission to certain attractions where the supplies are currently standard rated. This include shows, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions, similar cultural events and facilities

Examples of where the reduced rate may apply could be attractions such as a planetarium, botanical gardens, studio tours, factory tours.

It does not include any supplies that are exempt.

Eat Out to Help Out Scheme

You can register for the scheme from 13 July 2020. Registration will close on 31 August. You'll be registered instantly and will receive a registration reference number - you'll need this when you claim the reimbursement.

You can use the Eat Out to Help Out Scheme:
- all day, every Monday, Tuesday and Wednesday from 3 to 31 August 2020
- to offer a 50% discount, up to a maximum of £10 per person, to diners for food or non-alcoholic drinks to eat or drink in
- to claim the money back from the government

There is no limit to the number of times customers can use the offer during the period of the scheme. Your customers cannot get a discount for someone who is not eating or drinking. Alcohol and service charges are excluded from the offer.

Who can register
You can register if your establishment:
- sells food for immediate consumption on the premises
- provides its own dining area or shares a dining area with another establishment for eat-in meals
- was registered as a food business with the relevant local authority on or before 7 July

You cannot register:
- an establishment that only offers takeaway food or drink
- catering services for private functions
- a hotel that provides room service only
- dining services (such as packaged dinner cruises)
- mobile food vans or trailers
If your application is based on dishonest or inaccurate information, your registration will be revoked.

What you'll need
To register, you must have:
- your Government Gateway ID and password (if you do not have one, you can create one when you register)
- the name and address of each establishment to be registered,
- the UK bank account number and sort code for the business (only provide bank account details where a BACS payment can be accepted)
- the address on your bank account for the business (this is the address on your bank statements)

You may also need your:
- VAT registration number (if applicable)
- employer PAYE scheme reference number (if applicable)
- Corporation Tax or Self Assessment unique taxpayer reference
If you are registering 25 establishments or less, you must provide the details of each.