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Coronavirus: UK Chancellor Announces Unprecedented Measures to Support the British Economy

Earlier this evening the UK Chancellor announced an economic intervention which is “unprecedented in the history of the British state” with measures to support the United Kingdom economy in the midst of COVID-19. Below are the key measures he announced for businesses:

  • The government is setting up a Coronavirus Job Retention Scheme. The scheme will allow an employer to apply for a grant of up to £2,500 a month to cover 80% of the salary of those remaining as employees but not working. It will cover the cost of wages backdated to 1 March and will be available initially for 3 months with a review at that time. There will be no limit on the amount of funding that is available under the scheme.
  • The next quarter of VAT payments for businesses are deferred until the end of June with payment due at the end of the current financial year, an injection of £30 billion of cash to businesses.
  • The Coronavirus Business Interruption Loan Scheme is extended to enable businesses to receive interest free loans for 12 months (previously announced as 6 months).
  • The 31 July instalment of income tax payment for the self-employed has been postponed until 31 January 2021.

The latest measures are in addition to those outlined by the Chancellor on 17 March 2020 (reported by us UK Chancellor’s latest measures in response to COVID-19).

© 2020 Proskauer Rose LLP.

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About this Author

Stephen Pevsner UK Tax law partenr Proskauer Rose private fund formation eorganisations, structured finance, investment funds
Partner

Stephen Pevsner is a tax partner and a member of the Private Investment Funds and Private Equity M&A groups. Stephen's practice covers the broad range of corporate and individual tax advice, with particular emphasis on private fund formation across a wide range of buyout, debt and infrastructure asset classes, as well as UK and international M&A transactions (often private equity backed). He has wide experience in corporate reorganisations, structured finance, investment funds and new business set-ups, and also advises regularly on a wide range of employee and fund manager...

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Associate

Philip Gilliland is an associate in the Tax Department.

Prior to joining Proskauer, Philip trained in the London office of a major international law firm where he worked on restructuring and insolvency, corporate M&A and tax matters. During his training contract he undertook a secondment at Unilever.

Philip earned his B.A. from St Catharine’s College, University of Cambridge.

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