UK's Sunak to announce a hike in property tax threshold, cut VAT on Wednesday – The Times
|Citing the UK government sources, the UK Times reported on Sunday, the country’s Finance Minister Rishi Sunak is considering plans to raise the property tax threshold to as high as GBP500K ($623,700) while temporarily slashing the value-added tax (VAT) in the hospitality sector, in an effort to boost the economy.
Key takeaways
“Sunak’s plans will also include a temporary VAT cut for pubs, restaurants and cafés to help to protect 2.4 million jobs in the hospitality sector.”
“Exemption in the stamp duty payment for the planned threshold is for a temporary period and could go up to a year.”
“Sunak is set to make an announcement on Wednesday on the government’s job support schemes and its plans to kickstart the economy.”
FX Implications
These above measures could likely benefit the pound and accelerate the upside in the GBP/USD pair.
The cable was last trading at 1.2480, modestly flat on the day. The spot recovered from daily lows of 1.2459, reached after markets reacted to the weekend comments from the BOE Governor Andrew Bailey on the negative interest rates.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.