but you are a sitting duck in the future.. they could just insert a withdrawal tax in a heart beat at any time, plus ISA savings rates on ISAs are deplorable... which leave stocks and shares ISAs.....your money is at risk as your investments can go down as well as up... everyone has pilled into index funds and that means a huge pot of money can just go POP!!!
@@rfxtubernot strictly true. Trading 212 have a cash ISA account and it’s still paying 5.1% which isn’t bad. Sure it’s not massive but at least it’s higher than inflation. Sure you could invest in the stock market with Trading 212 but that’s a higher risk as you can lose money.
I've been flipping small houses for the past 5 years. It's been good for me and much better return than S&S. Lots of different property strategies although the vanilla BTL is very challenging right now.
@@thepropertyflipper Isnt it just alot more work though? You could've done what most people have done in the last year and just gone in on nvidia and won.
Statistically on the long run house investment avg return is 3%/year. Im sure I will have some proper financial struggle if I ever reach a deposit threshold level because I will consider: a) get mortgage for 35-40 years paying interest to the bank, so statistically I can pay it way beyond my retirement age, that will also never happen, because that handful of peanuts wont cover the monthly payment, so I will just end up working but in exchange I can pay for refurbishment, and I can save money by turning the place to a semi-passive house (unlikely I will ever be able to convince my landlord to push more investment than the bare minimum EPC level) and since I am childfree anyway generational wealth isn't motivational either or b) just keep compounding the portfolio and use the dividend / return to cover rental price? here the doomer anxiety logic can say that we can speculate how much rent prices will take over mortgage rates Some already shouting "end is neigh" because of the stamp duty increase. According to projection 125k homes will be freed up if landlords will just give up their properties. But those 125k households who are renting it will still need to go somewhere, so supply n demand will shift to shorter supply. Lets be real, whats the chance that those who renting have priority to buy the place or even have any method to getting it?
What you have spotted there with the goverments expected ISA income through the inflation hitting the ISA limits is actually genius. Thank you so much Toby! I wasn't too fussed that they were holding it at £20,000. I actually thought "Oh good!" and I now realise it isn't as good as it initially sounds haha
@@elliotpollard9083true, but it makes it more important to use it whenever you can or lose the allowance. I made the mistake of holding onto a few grand of cash for emergencies outside of an ISA last tax year, and didn't put it all in before April. Instead, it used up a big chunk of my allowance this year when it didn't have to.
It's still great because the tories have bled the country dry and in order to keep important services intact the government needs to increase tax revenue and it's only fair we all contribute. Freezing the ISA limit for a couple of years is a very reasonable way to increase tax contributions by relatively well off people.
Also, ISAs retain their tax-free status for 3 years and 1 day after someone dies. Which is useful if probate / distribution of assets takes a long time.
While you do lose your allowance if you don’t use it the introduction of flexible ISAs enables money to be withdrawn and put back in with no penalty as long as you do it within the same financial year. It does require you having the cash, but I have done this for a few years now and managed to roll over my allowances, but still use the cash for other purposes. I make sure my ISA is fully funded by 5th April each year, and then if it is not being invested withdraw it and use it to offset against my mortgage. As my mortgage comes down more and more gets funnelled into my ISA, using the allowances I rolled over. I find this quite an effective strategy.
Nah it's still pretty low. If you are paying into a pension, maxing out £20k isa and still have spare money to put into places that will have capital gains then be happy you're doing so well and pay your dues.
It's about making it fair. I earn over 50k through work I also have investments. As my income from my investments increases perversely the % overall tax is going down. I'm now richer than I've ever been but % wise I actually pay a lot less tax. I've also moving more of my work income into my pension further decreasing the tax I pay.
I have invested in both ISAs and Pensions over the last 40 years.They have Both done very well but the ISA is the absolute winner by a country mile. The ISA also has flexibility where the Pension is a Straight Jacket. You can take out of an ISA as much as you want or need anytime that suits you, and if you wish you can put it back into the ISA before the end of THE TAX YEAR without losing the tax free element. In short you can use the ISA as a Bank account, with a little manoeuvring.(DYOR). If this budget proposal goes through in 2027 you could end up paying 67% of the total in Tax, Less your 25% tax free entitlement .Pensions are extremely messy and ISAs are extremely simple. Also if you can choose your own fruit and veg in life you can choose your own shares - its easy and far, far more profitable in the long run.
Absolutely. I sold my houses in 2018, bit early. Moved our money into ISAs for me and the 2 kids, max them out every year. And pumping more into our pensions. Best move we ever made.
The great brutish idjots...😅😅😅😅 Anybody who uses these instruments like isa sipp pip shiiit etc. in the hope of making any killing or gain is facking deluded and delusional!!😅😅😅😅 They are all waiting and pretty much bound to be screwed. Your all asking for it😅😅😅 don't say you were never warned...
Are you renting now?How about Inheritance Tax Liability?Sounds as if you are single with two children. The system discriminates against singles and dvorcees with or without children when it comes to Inheritance Tax
@@A190xx What are you on about? If you your pension for what it was set out by the government for then it will not be taxed. Remember we get tax relief on contributions to our defined pensions and can take out 25% tax free. Peoples real gripe is that have used it as a way of passing wealth down the generations which was not the intent of this vehicle.
@elliotpollard9083 The new rules will see 40% inheritance tax on death and any money drawn by inheritors will be subject to income tax so this could be as much as 70.5% is paid on taxes. I do intend to spend my pension, but I do not know how long I will live, so I would at least like the excess to go to my family. And if I spend my entire pension fund in my first year of retirement then it will cost more than 40%. Regardless of its my money that I have saved so why should the government get it?
Toby, this video is, in my opinion, one of your best videos: it gets the point home and sells the advantages of Stocks & Shares ISAs very well. I'm 54 and only started investing 6 years ago, so most of my money is in SIPPS because I wanted the advantage of the tax relief. But, if I were in my 20s then a Stocks & Shares ISA would be King.
Don't talk the death talk, it's depressing. I'm older than you, but I invest like I always have, a bit of money in a sensible tracker like the S and P 500, and bit of money in something a bit crazier, like bitcoin. My plan is to be an immortal and live forever. Then one day, whilst on safari in Africa, a lion will jump out from behind a bush and bite my head off. And I will bite the dust thinking, That could have happened when I was 10 years old. I've had a good innings.
This is exactly my plan. I am investing in 3 distinct retirement pots. 1) ISA, 2) pension and 3) other stocks and shares. I'm hoping to retire in 15 years with enough in pot 3 to last for about 10 years. I also intend on withdrawing my ISA allowance from pot 2 every year to maintain ISA contributions. Which should end up being largely tax free (25% plus 12k income allowance). Then when pot 3 has been exhausted (10 years) I plan to move to withdrawing from pot 2 and again will aim for it to last another 10 years. I'm hoping that with 25 years of growth from today it will be enough to provide a good living standard even after paying income tax. Then when that has been depleted I will live off my state pension and my ISA which should have seen 35 years of contributions and growth. So really ought to be plenty money for an 80 year old, and I should be completely exempt from having to pay any tax at all. Furthermore this plan will protect my spouse, if I die at any point she will inherit everything, there's no annuity that dies with me. Just a well crafted plan that she can continue to execute if and when I am gone.
I'm doing very similar to you with a similar plan My father retired at 60 and tells me when he got to 72 He could live a decent life of. His and my mother's state pension alone
I like it. I'm already working with that strat for ISA and PB. Been looking at SIPP because I found out the gov give you the tax back. I just dont like not having access to it until 55, which becomes 57, and then who knows how often they'll move the goal post in terms of when we can access it. But I like the idea of a SIPP anyway.
@@pmason6076 SIPP only if you're paying the higher 40% rate tax now and plan to withdraw from your SIPP at 20%.... ISA first!!... as the man in the vid says.
Ta. Maybe you could make a video on how to max the ISA to pension ratio in terms of when drawing from a pension and then placing those funds into an ISA e.g. the 25% tax free pension allowance and so on. Hope this makes sense. Cheers!
Yes please! I've done nothing with my isa for decades and nver thought I should shuffle. Also I have a small stock exchange account so I can invest in companies which look like winnners
Excellent point made.. my wife and I have already maxed out our stocks and shares ISAs.. indeed a great tool for us.. thanks again for your content, cheers.
The statistic that fewer than 4 million adults in the UK hold Stocks & Shares ISAs never ceases to amaze me. Imagine if our education system provided us with the kind of financial insights you so excellently share. If everyone began investing regularly from 18, using tax-efficient accounts like the Stocks & Shares ISA, the long-term growth could be transformative, even creating significant financial safety nets long term. That level of financial security could empower more people to step away from traditional 9-5 jobs and invest in themselves, potentially starting businesses that go on to create jobs, support others to invest from their salary, stimulate the economy, and increase government revenues through business taxes. It’s obviously not always as straightforward as that, but it feels like a real disservice to the next generation if we don’t embed this knowledge into formal education. I know I'm preaching to the choir here but I'm still shocked. Great video as always Toby! 😃
Agree completely, I've been a stocks and shares ISA evangelist for over 20 years but nobody wants to listen. The herd isn't very smart and doesn't realise the serious social mobility on offer, even to those on low wages.
There are no VAT or capital gains tax in Hong Kong. Employment tax in Hong Kong (after allowable deductions and personal allowances) starts at 2% rising to a maximum of 17%. Those tax rates make us weep when compared with those in the UK.
"If youre saving 20000 of that then you must be living in ur childhood bedroom with all your bills paid" that's me on track to max out my isa this year at 21
Great video! I have a stocks and shares ISA but at age 54, I often hear that at that age you have to be more careful with that kind of investment as you don't have as much of a long term view compared to when you're younger. So I call myself a slightly nervous investor!!
@@graemebale248most markets have had a significant dip in the last week so I don’t think it’s the UK budget at fault - this time! A certain event in the US tomorrow is probably more of an impact
The vast majority of UK ISA S&S, pensions and S&S's subject to CGT is invested in 1 of 4 global trackers. None of them ever have more than 5% invested in the UK.
First video I've seen of yours and I was ready to subscribe about 5 mins in because of the clear concise explanation. The moment you mentioned master chief I subscribed without waiting for the end of the vid.
20k a year, nowadays (and only for as long as this Government holds off applying taxes to it) can hardly generate what in many other jurisdictions would be considered being 'wealthy', especially with the ravaging effects of inflation. It's unbelievably cruel.
the government still thinks UK is a 5 star hotel offering premium financial benefits to investors and savers, when in fact it's a room in a hostel that doesn't offer late checkout that you have to share with 5 other people. now i understand why british people dream of leaving the UK.
Nope.... we're in the streets, because the illegal immigrants are in all the hotels & YOUR taxes are paying for their nice warm, well fed, comfortable, accommodation. Enjoy the Labour government.
The UK economy, like many others, is in the doldrums. Overall taxation is at a 70 year high in the UK. And now this government want even more. Has it ever dawned upon anyone in government that we might actually be going in the wrong direction with taxation?
I've been maxing my stocks and shares ISA every year for the last 4 years. £20k is a huge allowance, I don't know any other country that even comes close. One day, after my investment grows, it will be ideal to just take out small amounts as I go along according to my needs without having to worry about tax and leaving the rest growing. No other investment compares, it's hard to comprehend the small percentage of people taking advantage of it.
I've been putting money into an S&S ISA since 2002, and maxing it out for the last seven or eight years, but we are fortunate. Much of the country does not have the disposable income to put anything at all into an ISA let alone maxing it out.
@@TheBoringInvestorMan I don't think it's so much about who earns enough to max their ISA. The fact that so very few can, exactly shows my point of how generous it is. The point is about how it compares to other investments, I know a lot of people that have bought property as buy-to-let and struggle to make any meaningful profits in spite of all the stress, hard work and exposure to taxes and mainly tax changes that it brings. The government, specially labour, tend to want to distribute wealth buy increasing taxes on landlords and second properties to the point where they becomes unviable, it's surprising how they're leaving S&S ISAs alone, even in 2030 a £20k allowance will still be very good.
I think some of that isa tax revenue is from the fact that pensions will be included in the IHT calculations so will mean estate values will increase and some of that IHT will need to come from isa accounts to settle it.
If they do it's not a very big tax raise - £600m is virtually nothing in the grand scheme of things. With fiscal drag you don't need to raise anything you just let inflation do the work for you (as we will see with the income tax bands). Watch this space though :)
@@stevo728822 Only a short while ago, i remember everyone saying the same about the banks? Oh for that to happen all the banks would need to fail... never happen, noooo.. Then all the banks failed!!! Never ever trust the stock market or the government... EVER!!!
That's simply not true. I invested in stocks and shares ISAs almost when they were first introduced. By putting aside as little as £20.00 per month to begin with, and being a little frugal and packing my own lunch for work instead of buying out . After many years I have a nice nest egg sitting tax free and earning a return better than any building society, ready for my retirement. No, I will not be financially free, as I will depend on the state pension, but what do you expect - winning the lottery? Sometimes you have to put in a little effort rather than whinging and wringing your hands.
@@theborderer1302 Bro are u fa real?!😅😅😅 So you basically disagreed with the OP by admitting that as an average person you'll not ever be "financially free" which is precisely the point that the OP has made?😅😅😅 Also I would love to see your calculations as to how 20 quid a month set aside for an isa for someone working ft on nmw would get them a massive boost for future disposable income. Dying to know.
@Red1Green2Blue3 😂😂😂😂😂😂😂😂😂 How exactly do we benefit from all these things if we still have to pay for them AND not getting the services?! Like nhs you would be number 7 and a half MILLION on their waiting list now.....
@scienceevolves4417 Yes, they're trashed now due to 14 years of underinvestment. What do you expect? Your argument is to underfund them EVEN MORE and then you'll be back in a TH-cam comment section complaining nothing works.
So in fact the title should be "The UK Budget made NO changes to ISAs". You see? You see? You **can** learn to make your titles more clickbait-friendly. PS as someone who has invested £20k into index funds in my shares ISA every 6th April for the past 15 years, I approve this message. Loaaaaaaaaaaaaaads a' money (
I was late to a s&s isa because i didnt know about them. Recently I have began priorising a sipp now with a bit in the isa, although being able to withdraw from an isa when i want is a major benefit. I wish i had started a long time ago but glad to have at least started back in 2022 with the isa. I'm really glad the government didnt mess around with the tax on them for now.
Hi Toby, thank you for the video, good advice as always. I have a question that no one is looking at, at the moment. My House, ISA, belongings are going to my Partner in my will. My Pension (SIPP) was going to my kids 50/50 until I was 75. Then an adjustment of things approaching 75. Now the SIPP will be included in my estate from 2027, I will have to think about this earlier. Today you have to have a Will for your estate and a separate instruction for your Pension. My question:- when your pension becomes part of your estate in 2027, would the separate Will instruction still be valid or does it all need to now be in a Will for all of your estate? I guess this would have been the same question I would have asked when I got to 75
Yeah own a few rental properties but what with the budget and the new renting laws, certainly it's a case of hunkering down and focus purely on improving the return and reduce the risks as far as possible. Already maxed out ISA alowance for many years but remember since 2022 it''s been very easy to get a 5 - 7 year fixed cash ISA's paying between 4.5 - 5% so now inflation has fallen back a decent return without much of the risk. So in my opinion a factor why Cash ISA's have been popular recently. But now all future allowances will be used for stocks and shares ISA's as the name of the game with this governement at my age is to keep future savings liquid to be able to withdraw it all if required. I'm older so past the stage where it's a case of paying into Pension pots. What this government is doing is a green light for other parties to offer big reductions in CGT and IHT at the next election. By that time the economy should be in a better place. So a case of sitting tight and completely avoid doing anything that triggers these taxes in the lifetime of this goverment.
This is a great video, it makes a very unclear, convoluted document so much more accessible for people like me. Im confused about stocks and shares ISAs though, is this an ISA that you put up to 20k a year in and then invest it in the stock market or do you put any gains you make from the stock market into this ISA?
Exactly as you said first - it's a type of account that you open, put up to £20k inside and choose what to invest in. I've made lots of videos on this topic including a guide if you search my channel. They are essentiall accounts IMO
An ISA is simply an account where you may add up to £20k per year, and whatever you earn inside the account is tax free for your life plus three years and one day. You can easily open one online from any of the big providers, including banks. You then choose what to buy with your money, which may be individual company shares or shares in pooled investments such as unit trusts and funds. Dividends earned from the investments (i.e. your share of the profits of the businesses that you invest in) can be either reinvested within the account (accumulation) or paid out (income) as you wish. It is best to diversify, and the best choice for a new, small investor is tracker funds in several classes: North America, Europe-ex-UK, UK, technology, healthcare, plus a bit of global, but not purely Asia, and not emerging markets. For extra safety, use different providers over several years to keep the total held each account within the financial protection limit, currently at £80k.
On CGT you can’t use your personal allowance to offset the tax. So you only get the lower rate of relief on about £37k as it starts at £12570 even if you have not used your personal allowance.
It was in the budget declaration. That's exactly where it was lifted from. Or are you saying that the entire document should have been read out in parliament? That would take well over 4 hours and wouldn't be terribly easy to follow.
As I can't reply directly, Yes I am Chris. If there are so many changes getting made we need to know exactly what is being changed when the budget is declared. If it takes 4 hours, so be it.
@@DavidJohnson-yg8qm well that's not how parliament works. Bills are presented by ministers with an accompanying opening summary statement. The detail of the bill is then scrutinised line by line in committee by MPs. It then gets voted on in the house, possibly with amendments. It's worked like that for centuries, and applies to all pieces of legislation, not just budgets.
Brilliant content just opened my stocks and shares isa through invest engine 👌 unfortunately im a late learner i have 5x my allowance would the thing to do max the isa put the rest in a general and feed into the isa until its all within the isa ?
I’d always max out the ISA every tax year - you’ll just have to wait! Also don’t forget about your pension too you might want to use a SIPP to get the tax breaks. I’ve got loads of videos on my channel which might help 👍👍👍
@@TobyNewbatt"big ISA changes" and your video then shows how there is almost no mention of ISA apart from frozen allowances and goes onto its main topic "why ISAs are great" (which I don't disagree with) No need to be an arse in your reply was there?
@ I genuinely believe this changes ISAs massively. Less than 7% of UK adults use them and these changes have made them even more powerful. It’s ok to disagree. I’m not being arsey but comments can easily be read negatively unfortunately 😎. As discussed in the video: 1. British ISA confirmed canned 2. ISA allowances frozen 3. CGT rates raised (making ISAs more valuable) 4. IHT on AIM shares (making ISAs more valuable) 5.SDLT on property makes investing more appealing compared to property (makes ISAs more valuable)
@TobyNewbatt 100% agree with this guy's comment. None of the reasons you listed are actual changes to any of the ISA products as the title and thumbnail of your video suggested. We never had the British ISA and the cap is still £20k so no change there. The other changes listed do make ISAs more appealing but they still haven't changed. Hard to see the title and thumbnail as anything but clickbait. Real shame when the content of the video was actually good. My guess is that you got more clicks that way but you have likely disenfranchised a lot of people from watching your future content.
while there were no direct changes to ISA in this budget announcemnt, changes in other financial amenities indirectly change the efficacy of the ISA. so there are changes made between the lines. this is the way i'm looking at it. also let's not be arses to one another, otherwise you are no better than the polititans that go baaaa and mooo in the house of commons like barnyard animals.
I'm 21 and have been able to stash a good amount of money in my stocks and shares ISA, I'm hoping that it will be enough by the time I finish uni or a bit later to put a deposit on a flat. So glad I discovered investing at my age rather than 10-20 years down the line.
Great video Toby. Now that Capital Gains Tax is increasing it makes SEIS and EIS investment schemes even more appealing. Please can you do a video on SEIS and EIS as no one seems to be talking about it much.
As a Brit who moved abroad many years ago, I am listening to all this slackjawed. Such low wages, so much tax, capital gains even on your principal residence and massive inheritance taxes levied up front before probate is granted, which will cripple the average beneficiary. My goodness, this is so unfair.
So, was it fair that an individual who owned only one house, but rented it out for a few years while living with a relative was subject to capital gains tax, but a rich landowner with many houses signed to a company name avoided capital gains altogether. That was the situation under the Tories. In many ways, Labour has levelled the ground. We can debate the rules, but taxing the poor and “fixing it “ for the rich was definitely not fair.
@@jgreen9361 No, it wasn't fair. But Labour hasn't fixed things. They haven't levelled the ground. If they had, I wouldn't be paying capital gains on the house my late mother left me but with the rider that her elderly husband continued to live in it, so that I can't live in it, sell it or rent it out, am on my own at 63, don't even have a home of my own as I was caring for another elderly relative, don't even live in the UK and have to sleep in other people's spare rooms and on their sofas. How can you be paying tax when you're unwaged and homeless on a property you can't have any use of? It's nuts.
You have been given poor advice. You don’t pay capital gains on an inherited property until it is sold. Even then you only pay it on the increase in value between when it was valued at probate and when you decide to sell it. As for inheritance tax, it only applies to properties above half a million and applies to the part of the value above half a million if it is left to children. Sorry not to feel sorry for you when you have just acquired an asset worth more than £500,000. Why a man in his 80s needs to still live in a property of that size is a bit of a mystery. It’s your property, you need to sort things out within the family, not expect the state to sort it out for you.
@@jgreen9361 That's right. But I'll have to pay capital gains on the increase on the value of the house since probate back in 2017, which will be a fair sum. The 'poor advice' came from HMRC themselves.
@ These things are stressful, especially when the family situation is complicated. But, there are worse things in life than being cash poor and asset rich. At your age you can afford to live beyond your means, knowing that there is over half a million coming your way at some point in the future. You can’t take it with you and there are ways to spend against the value of the assets. Do your own research so that you make a good decision. Look on line at sites such as “10 alternatives to equity release”.
@ short term price movements a commodity is totally irrelevant but you can buy whatever you like. Gold is not an investment and never has been - at best it’s a store of value because people agree it is. It produces no cash flows and has no profit nor can it grow its market 😎
@TobyNewbatt devil's advocate, if you buy at x price, hold for a year and sell for a 10% profit and inflation was say 5% for that period... isn't that a profit and therefore an investment?
Quite agree on your emphasis in this video ISA’s ISA’s ISA’s Now that the pension ‘loophole’ has been closed, I would steer anyone, unless they are in a company scheme with an employer chipping in, to ditch pensions and redirect it to a low cost investment Isa. The sheer simplicity and versatility now outweigh the tax advantages. You just do ‘what you likey’ and that cannot be countered by any ‘Spreadsheet Phil’s’ out there with their predictive super programmes This coming from a life long dedicated PENSIONS PENSIONS PENSIONS advocate, disillusioned by a recent £8k charge by my on-going advisor to get £100k tax free cash. Not so ‘free’ was it?!!!
If there is a good low cost SIPP then investing in a SIPP and the government will add 20% in as a minimum because pensions are tax free and your money has already been taxed. Higher rate tax payers can claim additional tax back as you’ve paid tax at a a higher rate. Hopefully trading 212 will do one at the same fees as their s&s ISA as they’ve been teasing one for a while.
Thank you Toby - Please can I ask: Drip feeding £1666 over 12 months into an S&S ISA would be better to average out the highs and lows right? Instead of just banging £20k in on April 6th? And if so do you know what platforms offer a drip feed mechanism or do you have to manually buy £1666 worths of shares (index fund) every month? Thank you your videos have been invaluable to me 🙏
Monthly is better than annually as you benefit from spreading the risk of buying at highs but it doesn’t really matter if you’re in it for the long run. Trading 212 is a good platform as you can buy fractional shares to suit your budget and you can set up a pie which allows you to set up a direct debit to auto buy what you want. In terms of funds, I use VWRP, which is a global index from vanguard and auto reinvests dividends for you. As an alternative, you could also buy a mix of VHVG and VFEG which is essentially VWRP but you pay less fees. However the only reason I don’t do that is because I would probably worry about the ratios and would therefore tinker with the stocks too often which defeats some of the purpose of the ease of investing in index funds in the first place. Hope that helps
I think that very few people can afford to max out the ISA allowance i never have been able to so its a null issue currently for me. More of an issue is the personal allowance and the badic state pension will be very close in value soon.
@@kw8757 Well then they will soon get into the embarrassing situation that ALL State Pensioners, even the poorest, will be subject to Income Tax, as the State Pension is currently only marginally below the Personal Allowance Threshold. With the state pension triple lock, its going to go above that Threshold in the next couple of years.
Great video as always! I have rental properties. One is paid off, the others have 2 years to go, all bought years ago. I only got into S&S ISA's at the start of this year, mostly down to watching your videos. I max out my ISA's as much as I can. I'm now starting to see the 'real' benefit of being a landlord without mortgages, but with so much red tape and tax I would strongly advise anyone doing it now. Will keep them to accelerate paying into ISA's and Pension, and ultimately additional retirement funds. They also give me more diversification but definitely don't become a landlord today, it's not worth it. Keep up the good work, your message is getting out there.
Whichever politicians are in power will still face calls to spend more on the big ticket items like the NHS, welfare & pensions, education & defence. All whilst interest on the vast debts from the 2008 Crash & consequent QE, covid spending, and unfunded public pensions eat up more & more of the spending total each year.
You realise that during the last 14 years the Conservative government raised the tax burden to it's highest ever level and also reduced the allowances on dividends and capital gains to almost nothing right? They were meant to be the party of pro-business :P
You should start your own TH-cam channel, convincing people to sell all their shares, like the doomsters who were shouting at everyone that Labour were coming for their rental properties with huge CGT rises
Toby, here's your comparison.... The 20 year moving average return in property is 2%/ys vs 5.9%/yr for a balanced indexed equity portfolio. Property investment only makes sense as a means of raising investment capital in a mortage because you don't have any other sources of capital. And most UK homeowners a significantly over invested in property just by owning their own home. (data source: Smarter Investing, Edition 1 only, Tim Hale).
Labour's war on wealth. Don't forget pensions are ony Tax free when you put your money in not so when you take it out when you have to pay tax at your nominal rate.
That's been the case for at least the past 15 years. More than 90% of UK ISA S&S, pensions and S&S's subject to CGT are invested in 1 of 4 global trackers. None of them ever have more than 5% invested in the UK.
@@methyleneblue4659 It does not matter where the money is invested, because the assets and the profits become British-owned. Moreover, many of the large UK-based companies are in effect like funds in that they comprise several pooled businesses, which may include foreign divisions, meaning that they are essentially global entities anyway. This is why their price tracks their real value in US Dollars, not Sterling. This is also why creating a "British" ISA is pointless.
The Stocks and Shares ISA is NOT "tax free." There is a 0.5% transaction tax (Stamp Duty). This is a cumulative tax so trade your money 1.7x a month and you will have paid 10% in tax within a year!
If you buy UK shares you pay taxes that has nothing to do with the ISA…I have a solution for you. Don’t buy UK shares and use ETFs and index funds instead. 😂 If you’re trading you are playing a losing game. Stick to long term investing 👍
@@TobyNewbatt ShutTFUp.... we need idiots to trade the market to keep it going ;). Mind you we have Americans to do that for us. Great video. And not everyone understands the concept of stealth tax.
@@TobyNewbatt Yeah, stick to long term investing build that huge pot up, for when they change things just before you start wanting to take it out in 30 years time... 😁
Nice one Toby👍 it’s to late for me, but as it stands today i would be maxing out my ISA at the expense of my pension although it’s still wise to contribute to one. I was 2/3 pension 1/3 isa so now I’m stuffed with a pension which is now (possibly by 2027) included in my estate. Screwed my plans
I am young enough to get that Halo reference! Already have that Stocks and Shares ISA with 150k in it. Will keep toping it up with 20k a year until I retire.
So where would you go. Definitely not EU, Canada, Australia or New Zealand. If you do find somewhere, would the want you and how long before they also change.
Best investment I ever made was to learn everything I could about a company (in my case, what was then Tesla Motors) by reading books and watching TH-cam fan videos, and use what little cash I had saved to open a stocks and shares ISA. The forms required were not too arduous (including the form for buying shares on the US stock market) and within a couple of weeks I made the telephone call, nervously asked to buy several shares at market price (which I learned just means at whatever the price is when the order goes through), and used up almost half my ISA allowance. Then I simply forgot about it and let it do what it had to. I had no experience in actively trading stocks, so I just forgot the password and let it rise or fall over the long term. After a couple of years, it was worth over ten times what I'd invested. I got lucky with the timing, but I also had a good feeling that would happen. I hope to add more now while the price is still "low" because many are predicting another ten times increase by end of this decade. It's like 2018 all over again: lots of fear mongering and doubt whether Tesla can do robotaxi and humanoid robot. I think they can and will, and I'm ready to make money when the market finally catches up!
Same here., I strongly agree that the Bitcoin ETFs approval will be greatly life opportunity for us, with my current portfolio of $102,500 from my investments with my personal financial advisor Steve Miley I totally agree with you😊
YES!!! That's exactly his name (Steve Miley) so many people have recommended highly about him and am just starting with him from Brisbane Australia...🇦🇺
He's my family's personal Broker and also a personal Broker to many family's in the United states, he is licensed and a FINRA AGENT in the United States.
I think the ISA allowance is fairly generous especially if you're topping it from spare income, which is the intention. It's a filter for people investing a windfall. Other countries have higher CGT and no ISA option. You have sole traders paying themselves with dividends (after using up the tax free allowance of course), these people are essentially paying lower income tax even under the new rules for 50k+
hardly surprising. Starmer clearly hates the working class....he not only struggles to define what a woman is but likewise has a very peculiar explanation of what a worker is! less than 5 years until this commie lot are wiped away at the ballot box - forever.
Great video. Really insightful. Who thinks at some point they will make our TAX-FREE ISA’s Taxable in the near future? Or general future? What if all this time we’re thinking when it’s time to use our S&S ISA the rules are they’re taxable…. It’s a worrying thought. Also, what platforms/companies does everyone use for their S&S ISA’s, general investing… I’ve been using a company through a financial advisor through st. James place…. Is this right?
...and the previous Chancellor knew he was leaving an unfunded £22 billion black hole in the economy, which has been confirmed by the Bank of England and OBR. Yet you have the audacity to call Reeves a 'lying liability'. You need to get some perspective after the behaviour of the last band of thieves and pirates who cast themselves as the party of economic competence. Every time they leave office the in-coming government has to deal with their misdeeds.
Who ever in power is going to do the same or something similar. The state continue to payout more than what its receive. Unless you feel it is time to abolish the NHS, drastically reduce benefits and paying for any care.
![fellow fellow - พรุ่งนี้ไม่มีใครรู้ feat. INK WARUNTORN [OFFICIAL MV]](http://i.ytimg.com/vi/QP6JyjYx_W0/mqdefault.jpg)
i have invested in ISA for 22 yrs. every year i try to use the max allowed. i would recommend it. and the interest is tax free.
but you are a sitting duck in the future.. they could just insert a withdrawal tax in a heart beat at any time, plus ISA savings rates on ISAs are deplorable... which leave stocks and shares ISAs.....your money is at risk as your investments can go down as well as up... everyone has pilled into index funds and that means a huge pot of money can just go POP!!!
Tax free? wow.. are you sire? 🤦🏾♂🤣
@@rfxtubernot strictly true. Trading 212 have a cash ISA account and it’s still paying 5.1% which isn’t bad. Sure it’s not massive but at least it’s higher than inflation.
Sure you could invest in the stock market with Trading 212 but that’s a higher risk as you can lose money.
Came here to say they haven't been around 22 yrs... then I did the maths. That hurt.
You clearly don’t understand investing
I would never get into property these days. I can understand it in previous decades. Stocks and Shares ISA is such a gift and the best alternative.
I've been flipping small houses for the past 5 years. It's been good for me and much better return than S&S. Lots of different property strategies although the vanilla BTL is very challenging right now.
@@thepropertyflipper Isnt it just alot more work though? You could've done what most people have done in the last year and just gone in on nvidia and won.
Statistically on the long run house investment avg return is 3%/year.
Im sure I will have some proper financial struggle if I ever reach a deposit threshold level because I will consider:
a) get mortgage for 35-40 years paying interest to the bank, so statistically I can pay it way beyond my retirement age, that will also never happen, because that handful of peanuts wont cover the monthly payment, so I will just end up working
but in exchange I can pay for refurbishment, and I can save money by turning the place to a semi-passive house (unlikely I will ever be able to convince my landlord to push more investment than the bare minimum EPC level)
and since I am childfree anyway generational wealth isn't motivational either
or
b) just keep compounding the portfolio and use the dividend / return to cover rental price?
here the doomer anxiety logic can say that we can speculate how much rent prices will take over mortgage rates
Some already shouting "end is neigh" because of the stamp duty increase.
According to projection 125k homes will be freed up if landlords will just give up their properties. But those 125k households who are renting it will still need to go somewhere, so supply n demand will shift to shorter supply.
Lets be real, whats the chance that those who renting have priority to buy the place or even have any method to getting it?
As an extra note, if you want property as investment without having manage tenants: REITs
@@thepropertyflipper I am pleased you have made it work.
What you have spotted there with the goverments expected ISA income through the inflation hitting the ISA limits is actually genius. Thank you so much Toby!
I wasn't too fussed that they were holding it at £20,000. I actually thought "Oh good!" and I now realise it isn't as good as it initially sounds haha
Even £14k is a generous allowance, to be fair.
@@elliotpollard9083true, but it makes it more important to use it whenever you can or lose the allowance. I made the mistake of holding onto a few grand of cash for emergencies outside of an ISA last tax year, and didn't put it all in before April. Instead, it used up a big chunk of my allowance this year when it didn't have to.
It's still great because the tories have bled the country dry and in order to keep important services intact the government needs to increase tax revenue and it's only fair we all contribute.
Freezing the ISA limit for a couple of years is a very reasonable way to increase tax contributions by relatively well off people.
Also, ISAs retain their tax-free status for 3 years and 1 day after someone dies. Which is useful if probate / distribution of assets takes a long time.
I didn't know that! Very handy
I didn’t know this!!!
Agreed 100% sound advice S&P 500 tracker in an isa wrapper is a no brainer
Toby, great post, very informative and I agree with you ISA’s have been and looking forward are going to a great way to invest 👍
While you do lose your allowance if you don’t use it the introduction of flexible ISAs enables money to be withdrawn and put back in with no penalty as long as you do it within the same financial year. It does require you having the cash, but I have done this for a few years now and managed to roll over my allowances, but still use the cash for other purposes. I make sure my ISA is fully funded by 5th April each year, and then if it is not being invested withdraw it and use it to offset against my mortgage. As my mortgage comes down more and more gets funnelled into my ISA, using the allowances I rolled over. I find this quite an effective strategy.
The capital gains tax of 24% is outrageous and the tiny allowance of 3k is ridiculous. Government really doesn't want people to get ahead
Nah it's still pretty low.
If you are paying into a pension, maxing out £20k isa and still have spare money to put into places that will have capital gains then be happy you're doing so well and pay your dues.
@caracal9458 you are delusional. Taking 24% of someone because they made good decisions should not be legal.
It's about making it fair.
I earn over 50k through work I also have investments.
As my income from my investments increases perversely the % overall tax is going down.
I'm now richer than I've ever been but % wise I actually pay a lot less tax.
I've also moving more of my work income into my pension further decreasing the tax I pay.
Modern Slavery in Britain 🇬🇧, Name of Taxation
@@concernedcitizen8231 You will just pay that tax when you withdraw your pension. They are also coming for the tax free allowance soon enough....
I have invested in both ISAs and Pensions over the last 40 years.They have Both done very well but the ISA is the absolute winner by a country mile. The ISA also has flexibility where the Pension is a Straight Jacket. You can take out of an ISA as much as you want or need anytime that suits you, and if you wish you can put it back into the ISA before the end of THE TAX YEAR without losing the tax free element. In short you can use the ISA as a Bank account, with a little manoeuvring.(DYOR). If this budget proposal goes through in 2027 you could end up paying 67% of the total in Tax, Less your 25% tax free entitlement .Pensions are extremely messy and ISAs are extremely simple.
Also if you can choose your own fruit and veg in life you can choose your own shares - its easy and far, far more profitable in the long run.
Absolutely. I sold my houses in 2018, bit early. Moved our money into ISAs for me and the 2 kids, max them out every year. And pumping more into our pensions. Best move we ever made.
For the government to tax you in your final years on it, double taxed no thanks
The great brutish idjots...😅😅😅😅
Anybody who uses these instruments like isa sipp pip shiiit etc. in the hope of making any killing or gain is facking deluded and delusional!!😅😅😅😅
They are all waiting and pretty much bound to be screwed. Your all asking for it😅😅😅 don't say you were never warned...
Are you renting now?How about Inheritance Tax Liability?Sounds as if you are single with two children. The system discriminates against singles and dvorcees with or without children when it comes to Inheritance Tax
Surely you sold them late? House prices didn’t even match inflation from 2008.
@@TaiwoOmotosho-m9v no I bought land, got permission to live on it in caravan. Built barns which I'm going to apply change of use.
there is nothing stopping the government changing rules in the future and deciding to tax what is in your ISA...always be nimble
Yep just like they did to pensions. Many have spent years building pensions only for Labour to steal 60%-70% of it.
That's exactly what he says in the video.
@@A190xx Where is 60% coming from? Pensions are to support yourself in old age and they have closed that loophole - spend your money.
@@A190xx What are you on about?
If you your pension for what it was set out by the government for then it will not be taxed.
Remember we get tax relief on contributions to our defined pensions and can take out 25% tax free.
Peoples real gripe is that have used it as a way of passing wealth down the generations which was not the intent of this vehicle.
@elliotpollard9083 The new rules will see 40% inheritance tax on death and any money drawn by inheritors will be subject to income tax so this could be as much as 70.5% is paid on taxes. I do intend to spend my pension, but I do not know how long I will live, so I would at least like the excess to go to my family. And if I spend my entire pension fund in my first year of retirement then it will cost more than 40%.
Regardless of its my money that I have saved so why should the government get it?
Toby, this video is, in my opinion, one of your best videos: it gets the point home and sells the advantages of Stocks & Shares ISAs very well. I'm 54 and only started investing 6 years ago, so most of my money is in SIPPS because I wanted the advantage of the tax relief. But, if I were in my 20s then a Stocks & Shares ISA would be King.
Grateful for the support thank you so much! And nice work on the SIPP, that tax relief is gold. It's been a pretty good 6 years :)
Don't talk the death talk, it's depressing. I'm older than you, but I invest like I always have, a bit of money in a sensible tracker like the S and P 500, and bit of money in something a bit crazier, like bitcoin. My plan is to be an immortal and live forever. Then one day, whilst on safari in Africa, a lion will jump out from behind a bush and bite my head off. And I will bite the dust thinking, That could have happened when I was 10 years old. I've had a good innings.
Thats sneaky. We should all know the proper headlines and changes.
Guess they were announcing changes. Contribs remaining the same isn't headline worthy.
It's a huge budget. Up to people to find out
This is exactly my plan. I am investing in 3 distinct retirement pots. 1) ISA, 2) pension and 3) other stocks and shares. I'm hoping to retire in 15 years with enough in pot 3 to last for about 10 years. I also intend on withdrawing my ISA allowance from pot 2 every year to maintain ISA contributions. Which should end up being largely tax free (25% plus 12k income allowance). Then when pot 3 has been exhausted (10 years) I plan to move to withdrawing from pot 2 and again will aim for it to last another 10 years. I'm hoping that with 25 years of growth from today it will be enough to provide a good living standard even after paying income tax. Then when that has been depleted I will live off my state pension and my ISA which should have seen 35 years of contributions and growth. So really ought to be plenty money for an 80 year old, and I should be completely exempt from having to pay any tax at all.
Furthermore this plan will protect my spouse, if I die at any point she will inherit everything, there's no annuity that dies with me. Just a well crafted plan that she can continue to execute if and when I am gone.
Might make sense to draw down pot 2 throughout to minimise income tax by staying below thresholds.
This sounds great, may I ask how old you are now?
@@brysoga great strategy
I'm doing very similar to you with a similar plan
My father retired at 60 and tells me when he got to 72
He could live a decent life of. His and my mother's state pension alone
@@edc1569Yes this is part of it, taking £20k a year out of pot 2 and moving it into pot 1 to continue the ISA building throughout.
optimal strategy: £60k pension per year, £20k isa stock & shares per year, £50k premium bonds, gold coins capital gains free.
I like it. I'm already working with that strat for ISA and PB. Been looking at SIPP because I found out the gov give you the tax back. I just dont like not having access to it until 55, which becomes 57, and then who knows how often they'll move the goal post in terms of when we can access it. But I like the idea of a SIPP anyway.
@@pmason6076 SIPP is just deferred tax when you take it out when your older
Premium bonds pay prizes from 4.4% interest, which only covers inflation let alone offer you any capital gain.
@@Benzknees tax free premium bonds with average luck is approx 8.45% for additional rate tax payers. VCTs are too high risk for me.
@@pmason6076 SIPP only if you're paying the higher 40% rate tax now and plan to withdraw from your SIPP at 20%.... ISA first!!... as the man in the vid says.
Ta. Maybe you could make a video on how to max the ISA to pension ratio in terms of when drawing from a pension and then placing those funds into an ISA e.g. the 25% tax free pension allowance and so on. Hope this makes sense. Cheers!
Yes please! I've done nothing with my isa for decades and nver thought I should shuffle. Also I have a small stock exchange account so I can invest in companies which look like winnners
Spot on video thank you. I have found out some of your recommendations the hard way
Excellent point made.. my wife and I have already maxed out our stocks and shares ISAs.. indeed a great tool for us.. thanks again for your content, cheers.
thanks for watching - it always means a lot
Thank you for this valuable information, Toby. Very clearly explained!
Good spotting. It was the same in 1997 with IR35, came out in the wash a week or two later.
The statistic that fewer than 4 million adults in the UK hold Stocks & Shares ISAs never ceases to amaze me. Imagine if our education system provided us with the kind of financial insights you so excellently share. If everyone began investing regularly from 18, using tax-efficient accounts like the Stocks & Shares ISA, the long-term growth could be transformative, even creating significant financial safety nets long term.
That level of financial security could empower more people to step away from traditional 9-5 jobs and invest in themselves, potentially starting businesses that go on to create jobs, support others to invest from their salary, stimulate the economy, and increase government revenues through business taxes. It’s obviously not always as straightforward as that, but it feels like a real disservice to the next generation if we don’t embed this knowledge into formal education. I know I'm preaching to the choir here but I'm still shocked.
Great video as always Toby! 😃
yeah but spending now is more fun !
Maybe it should be made compulsory that a percentage of wages goes into investments and pensions.
Completely agree!
Agree completely, I've been a stocks and shares ISA evangelist for over 20 years but nobody wants to listen. The herd isn't very smart and doesn't realise the serious social mobility on offer, even to those on low wages.
If they taught financially literacy in schools, noone would accept what is happening now.
Well presented as always Toby
There are no VAT or capital gains tax in Hong Kong. Employment tax in Hong Kong (after allowable deductions and personal allowances) starts at 2% rising to a maximum of 17%. Those tax rates make us weep when compared with those in the UK.
"If youre saving 20000 of that then you must be living in ur childhood bedroom with all your bills paid" that's me on track to max out my isa this year at 21
BOOM! Yes Lewis. I wish I had that opportunity i'd be doing the same thing. Your older self will thank you!
@@seamus7054Very wise advice! 👍
I 28 and living in a shed in my parent garden
Is that the TH-camr Chris palmer ?
@@icarus_aplucky you keep saving
Great video! I have a stocks and shares ISA but at age 54, I often hear that at that age you have to be more careful with that kind of investment as you don't have as much of a long term view compared to when you're younger. So I call myself a slightly nervous investor!!
In my view 54 is still plenty young :) - IMO you are still going to need to invest for a few decades more yet!
My stocks and shares have crashed since the budget??!!
@@graemebale248most markets have had a significant dip in the last week so I don’t think it’s the UK budget at fault - this time! A certain event in the US tomorrow is probably more of an impact
@@graemebale248 just ride it out as usual I guess.
The vast majority of UK ISA S&S, pensions and S&S's subject to CGT is invested in 1 of 4 global trackers. None of them ever have more than 5% invested in the UK.
First video I've seen of yours and I was ready to subscribe about 5 mins in because of the clear concise explanation. The moment you mentioned master chief I subscribed without waiting for the end of the vid.
@@ZakiQ 😎 haha welcome aboard soldier
Very helpful indeed
The information you provided is awesome. It's the one thing I needed for my financial journey
Thanks for bringing this to our attention Toby 👍
Welcome
I will put my money into ISA stocks and shares. Thank you for your great video.
This advice is gold, thank you Toby. As are ISA, one of the few remaining ways to build wealth in the UK.
Glad it was helpful!
no get crypto gold silver
I agree. I definitely won't buy property in the UK but elsewhere 😂😂
20k a year, nowadays (and only for as long as this Government holds off applying taxes to it) can hardly generate what in many other jurisdictions would be considered being 'wealthy', especially with the ravaging effects of inflation. It's unbelievably cruel.
Buying physical gold and silver are MUCH better than an ISA...
New subscriber, thanks for the clear explanations! 🙂
Woo Hoo. Banging Halo reference. Love it
I'm a Doom guy myself.
the government still thinks UK is a 5 star hotel offering premium financial benefits to investors and savers, when in fact it's a room in a hostel that doesn't offer late checkout that you have to share with 5 other people. now i understand why british people dream of leaving the UK.
Ahhh but remember nothing exsits not even you or the money,your feeding the divisional demiurge
Well said, we are nearly on the streets not a hostel
And yet there are all those lads queuing up in France in their rubber boats, waiting for a fair wind.
Spot on! I’m already looking at where I can go abroad and so many of my friends are doing the same. Time to leave this lousy hostel!
Nope.... we're in the streets, because the illegal immigrants are in all the hotels & YOUR taxes are paying for their nice warm, well fed, comfortable, accommodation. Enjoy the Labour government.
This is an excellent video and covers some very good planning points.
Sadly we are in an era of big government that is often very wasteful,
The UK economy, like many others, is in the doldrums. Overall taxation is at a 70 year high in the UK.
And now this government want even more. Has it ever dawned upon anyone in government that we might actually be going in the wrong direction with taxation?
I've been maxing my stocks and shares ISA every year for the last 4 years. £20k is a huge allowance, I don't know any other country that even comes close. One day, after my investment grows, it will be ideal to just take out small amounts as I go along according to my needs without having to worry about tax and leaving the rest growing. No other investment compares, it's hard to comprehend the small percentage of people taking advantage of it.
I've been putting money into an S&S ISA since 2002, and maxing it out for the last seven or eight years, but we are fortunate. Much of the country does not have the disposable income to put anything at all into an ISA let alone maxing it out.
If you do nothing, inflation adjusted that will be worth £115k in 10 years and £161k in 20 years.
A useful fund from which to top up pension drawdown, itself kept to the personal allowance annual amount.
Not hard when you consider how many people don't make enough money to even consider savings that can be locked away for at least 15 years.
@@TheBoringInvestorMan
I don't think it's so much about who earns enough to max their ISA. The fact that so very few can, exactly shows my point of how generous it is. The point is about how it compares to other investments, I know a lot of people that have bought property as buy-to-let and struggle to make any meaningful profits in spite of all the stress, hard work and exposure to taxes and mainly tax changes that it brings.
The government, specially labour, tend to want to distribute wealth buy increasing taxes on landlords and second properties to the point where they becomes unviable, it's surprising how they're leaving S&S ISAs alone, even in 2030 a £20k allowance will still be very good.
Brilliant as usual, it all make sense listening to your approach on investing!
Toby, thank you for sharing this informative content.
Excellent video and great comments .. the 4 million also amazed me !!
I think some of that isa tax revenue is from the fact that pensions will be included in the IHT calculations so will mean estate values will increase and some of that IHT will need to come from isa accounts to settle it.
By the way, you can buy bonds within an ISA. I personally have a fund that includes a basket of gilts. No tax to pay.
So you don’t think the positive figures in that document indicate a future tax to be placed on isa savings ?
I suspect your right on this one
If they do it's not a very big tax raise - £600m is virtually nothing in the grand scheme of things. With fiscal drag you don't need to raise anything you just let inflation do the work for you (as we will see with the income tax bands). Watch this space though :)
@@TobyNewbatt let’s pray they don’t 🤞
Thankyou this is great advice. I already have a stocks and shares Isa. It's never to late to start saving for your future.
Stocks and shares isas have been great for me way better than cash
definitely over the long term! Just got to hang on when it gets tough as well :)
They go UP and DOWN. Hold fast.
@@stevo728822 Only a short while ago, i remember everyone saying the same about the banks? Oh for that to happen all the banks would need to fail... never happen, noooo.. Then all the banks failed!!! Never ever trust the stock market or the government... EVER!!!
We are being legally robbed from every angle - the average PAYE individual has zero chance of becoming financially free.
That's simply not true. I invested in stocks and shares ISAs almost when they were first introduced. By putting aside as little as £20.00 per month to begin with, and being a little frugal and packing my own lunch for work instead of buying out . After many years I have a nice nest egg sitting tax free and earning a return better than any building society, ready for my retirement. No, I will not be financially free, as I will depend on the state pension, but what do you expect - winning the lottery? Sometimes you have to put in a little effort rather than whinging and wringing your hands.
@@theborderer1302
Bro are u fa real?!😅😅😅
So you basically disagreed with the OP by admitting that as an average person you'll not ever be "financially free" which is precisely the point that the OP has made?😅😅😅
Also I would love to see your calculations as to how 20 quid a month set aside for an isa for someone working ft on nmw would get them a massive boost for future disposable income. Dying to know.
No, you're not. You benefit from schools, roads, NHS, fire fighters, defence, etc. You have to pay for it.
@Red1Green2Blue3
😂😂😂😂😂😂😂😂😂
How exactly do we benefit from all these things if we still have to pay for them AND not getting the services?!
Like nhs you would be number 7 and a half MILLION on their waiting list now.....
@scienceevolves4417 Yes, they're trashed now due to 14 years of underinvestment. What do you expect? Your argument is to underfund them EVEN MORE and then you'll be back in a TH-cam comment section complaining nothing works.
So in fact the title should be "The UK Budget made NO changes to ISAs". You see? You see? You **can** learn to make your titles more clickbait-friendly. PS as someone who has invested £20k into index funds in my shares ISA every 6th April for the past 15 years, I approve this message. Loaaaaaaaaaaaaaads a' money (
Shussshh. Don't make a big song and Dance about this. Otherwise Rachel Thieves will come and take it from us. .
I was late to a s&s isa because i didnt know about them. Recently I have began priorising a sipp now with a bit in the isa, although being able to withdraw from an isa when i want is a major benefit.
I wish i had started a long time ago but glad to have at least started back in 2022 with the isa.
I'm really glad the government didnt mess around with the tax on them for now.
Don't worry. We are entering a new Roaring Twenties in 2025.
@@stevo728822 Agreed. Bull run is only warming up (U.S market)
At 43 I've missed the boat for starting a. Lifetime isa. What's the best, most efficient way for me to save a deposit for a house now?
Thanks Toby!
I’ve got involved thanks for the advice
With the increase in CGT on shares (outside my ISA) I am now very reluctant to invest in the stock market now.
just dont sell until future governments lower CGT; they're supposed to be 10+ year investments anyway
@@clanOTit will never be lowered.
@@clanOT Naive to think they won't tax raid ISAs in future, especially since the UK is in a death spiral.
Hi Toby, thank you for the video, good advice as always.
I have a question that no one is looking at, at the moment. My House, ISA, belongings are going to my Partner in my will. My Pension (SIPP) was going to my kids 50/50 until I was 75. Then an adjustment of things approaching 75. Now the SIPP will be included in my estate from 2027, I will have to think about this earlier. Today you have to have a Will for your estate and a separate instruction for your Pension.
My question:- when your pension becomes part of your estate in 2027, would the separate Will instruction still be valid or does it all need to now be in a Will for all of your estate? I guess this would have been the same question I would have asked when I got to 75
Great content toby 👌🏻
Thank you 🙌
What do you think about investing in gold? That incurs CGT? above a certain level
Yeah own a few rental properties but what with the budget and the new renting laws, certainly it's a case of hunkering down and focus purely on improving the return and reduce the risks as far as possible. Already maxed out ISA alowance for many years but remember since 2022 it''s been very easy to get a 5 - 7 year fixed cash ISA's paying between 4.5 - 5% so now inflation has fallen back a decent return without much of the risk. So in my opinion a factor why Cash ISA's have been popular recently. But now all future allowances will be used for stocks and shares ISA's as the name of the game with this governement at my age is to keep future savings liquid to be able to withdraw it all if required. I'm older so past the stage where it's a case of paying into Pension pots. What this government is doing is a green light for other parties to offer big reductions in CGT and IHT at the next election. By that time the economy should be in a better place. So a case of sitting tight and completely avoid doing anything that triggers these taxes in the lifetime of this goverment.
This is a great video, it makes a very unclear, convoluted document so much more accessible for people like me. Im confused about stocks and shares ISAs though, is this an ISA that you put up to 20k a year in and then invest it in the stock market or do you put any gains you make from the stock market into this ISA?
Exactly as you said first - it's a type of account that you open, put up to £20k inside and choose what to invest in. I've made lots of videos on this topic including a guide if you search my channel. They are essentiall accounts IMO
An ISA is simply an account where you may add up to £20k per year, and whatever you earn inside the account is tax free for your life plus three years and one day. You can easily open one online from any of the big providers, including banks. You then choose what to buy with your money, which may be individual company shares or shares in pooled investments such as unit trusts and funds. Dividends earned from the investments (i.e. your share of the profits of the businesses that you invest in) can be either reinvested within the account (accumulation) or paid out (income) as you wish. It is best to diversify, and the best choice for a new, small investor is tracker funds in several classes: North America, Europe-ex-UK, UK, technology, healthcare, plus a bit of global, but not purely Asia, and not emerging markets. For extra safety, use different providers over several years to keep the total held each account within the financial protection limit, currently at £80k.
On CGT you can’t use your personal allowance to offset the tax. So you only get the lower rate of relief on about £37k as it starts at £12570 even if you have not used your personal allowance.
if I opened a stocks and shares ISA,what level of risk,should i accept.
Funny how this wasn't included in tge budget declaration. We are being led by deviants.
It was in the budget declaration. That's exactly where it was lifted from.
Or are you saying that the entire document should have been read out in parliament? That would take well over 4 hours and wouldn't be terribly easy to follow.
As I can't reply directly, Yes I am Chris. If there are so many changes getting made we need to know exactly what is being changed when the budget is declared. If it takes 4 hours, so be it.
@@DavidJohnson-yg8qm well that's not how parliament works.
Bills are presented by ministers with an accompanying opening summary statement. The detail of the bill is then scrutinised line by line in committee by MPs. It then gets voted on in the house, possibly with amendments.
It's worked like that for centuries, and applies to all pieces of legislation, not just budgets.
Brilliant content just opened my stocks and shares isa through invest engine 👌 unfortunately im a late learner i have 5x my allowance would the thing to do max the isa put the rest in a general and feed into the isa until its all within the isa ?
I’d always max out the ISA every tax year - you’ll just have to wait! Also don’t forget about your pension too you might want to use a SIPP to get the tax breaks. I’ve got loads of videos on my channel which might help 👍👍👍
@TobyNewbatt thanks alot toby I will search them out keep up the great work 👍
I feel like the video title is a little misleading...
If you believe the budget didn’t change ISAs then you might have read the wrong budget 😎
@@TobyNewbatt"big ISA changes" and your video then shows how there is almost no mention of ISA apart from frozen allowances and goes onto its main topic "why ISAs are great" (which I don't disagree with)
No need to be an arse in your reply was there?
@ I genuinely believe this changes ISAs massively. Less than 7% of UK adults use them and these changes have made them even more powerful.
It’s ok to disagree. I’m not being arsey but comments can easily be read negatively unfortunately 😎.
As discussed in the video:
1. British ISA confirmed canned
2. ISA allowances frozen
3. CGT rates raised (making ISAs more valuable)
4. IHT on AIM shares (making ISAs more valuable)
5.SDLT on property makes investing more appealing compared to property (makes ISAs more valuable)
@TobyNewbatt 100% agree with this guy's comment.
None of the reasons you listed are actual changes to any of the ISA products as the title and thumbnail of your video suggested.
We never had the British ISA and the cap is still £20k so no change there. The other changes listed do make ISAs more appealing but they still haven't changed.
Hard to see the title and thumbnail as anything but clickbait. Real shame when the content of the video was actually good. My guess is that you got more clicks that way but you have likely disenfranchised a lot of people from watching your future content.
while there were no direct changes to ISA in this budget announcemnt, changes in other financial amenities indirectly change the efficacy of the ISA. so there are changes made between the lines. this is the way i'm looking at it. also let's not be arses to one another, otherwise you are no better than the polititans that go baaaa and mooo in the house of commons like barnyard animals.
I have a question for you Toby I have ISAs can withdraw the yearly interest and will I have to pay tax on the interest from the isas I withdraw ??
You don’t pay any tax on ISA products whether that’s a cash ISA or a stocks and shares ISA
@ thank you Toby for your prompt reply 👍
I'm 21 and have been able to stash a good amount of money in my stocks and shares ISA, I'm hoping that it will be enough by the time I finish uni or a bit later to put a deposit on a flat. So glad I discovered investing at my age rather than 10-20 years down the line.
At 21 you're well ahead of the curve.
Consider a LISA as you get free money from the gov!! Well worth putting the 4k in there then the rest in ISA
@@manapause was about to say the the same thing:) At age 21 the LISA should definitely be considered
Great video Toby. Now that Capital Gains Tax is increasing it makes SEIS and EIS investment schemes even more appealing. Please can you do a video on SEIS and EIS as no one seems to be talking about it much.
As a Brit who moved abroad many years ago, I am listening to all this slackjawed. Such low wages, so much tax, capital gains even on your principal residence and massive inheritance taxes levied up front before probate is granted, which will cripple the average beneficiary. My goodness, this is so unfair.
So, was it fair that an individual who owned only one house, but rented it out for a few years while living with a relative was subject to capital gains tax, but a rich landowner with many houses signed to a company name avoided capital gains altogether. That was the situation under the Tories. In many ways, Labour has levelled the ground. We can debate the rules, but taxing the poor and “fixing it “ for the rich was definitely not fair.
@@jgreen9361 No, it wasn't fair. But Labour hasn't fixed things. They haven't levelled the ground. If they had, I wouldn't be paying capital gains on the house my late mother left me but with the rider that her elderly husband continued to live in it, so that I can't live in it, sell it or rent it out, am on my own at 63, don't even have a home of my own as I was caring for another elderly relative, don't even live in the UK and have to sleep in other people's spare rooms and on their sofas. How can you be paying tax when you're unwaged and homeless on a property you can't have any use of? It's nuts.
You have been given poor advice. You don’t pay capital gains on an inherited property until it is sold. Even then you only pay it on the increase in value between when it was valued at probate and when you decide to sell it. As for inheritance tax, it only applies to properties above half a million and applies to the part of the value above half a million if it is left to children. Sorry not to feel sorry for you when you have just acquired an asset worth more than £500,000. Why a man in his 80s needs to still live in a property of that size is a bit of a mystery. It’s your property, you need to sort things out within the family, not expect the state to sort it out for you.
@@jgreen9361 That's right. But I'll have to pay capital gains on the increase on the value of the house since probate back in 2017, which will be a fair sum. The 'poor advice' came from HMRC themselves.
@ These things are stressful, especially when the family situation is complicated. But, there are worse things in life than being cash poor and asset rich. At your age you can afford to live beyond your means, knowing that there is over half a million coming your way at some point in the future. You can’t take it with you and there are ways to spend against the value of the assets. Do your own research so that you make a good decision. Look on line at sites such as “10 alternatives to equity release”.
Best atocks and shares isa to use for savings? I have retirement account with vanguard but want an isa aswell
Something like Trading 212? Check out my description for a link :)
@@TobyNewbatt cheers mate, love your channel I have learnt alot! Wouldn't mind a 1 to 1 with you in the future if that's something you do 👌
@@KieranLane-z9y I do, check my description and send me over an email :)
So, gold in the form of coins buried in the ground is still the best investment.
@@JulianCooke-yn5lh yep they are the best investment if you want to underperform the market long term 😂
Isn’t gold up 33% on the year or something. Central banks are loading up on gold at the moment.
@ short term price movements a commodity is totally irrelevant but you can buy whatever you like. Gold is not an investment and never has been - at best it’s a store of value because people agree it is. It produces no cash flows and has no profit nor can it grow its market 😎
@@richardattridge3182 Yes, it is. Making it expensive to buy now. Got to be a pretty high chance it's due a correction...
@TobyNewbatt devil's advocate, if you buy at x price, hold for a year and sell for a 10% profit and inflation was say 5% for that period... isn't that a profit and therefore an investment?
Brilliant content.
Just wish I'd known about this stuff in my 20s/30s. Pants!
Better late than never though :P
@@TobyNewbatt True.
Excellent video, so much info Toby
Quite agree on your emphasis in this video ISA’s ISA’s ISA’s
Now that the pension ‘loophole’ has been closed, I would steer anyone, unless they are in a company scheme with an employer chipping in, to ditch pensions and redirect it to a low cost investment Isa. The sheer simplicity and versatility now outweigh the tax advantages. You just do ‘what you likey’ and that cannot be countered by any ‘Spreadsheet Phil’s’ out there with their predictive super programmes
This coming from a life long dedicated PENSIONS PENSIONS PENSIONS advocate, disillusioned by a recent £8k charge by my on-going advisor to get £100k tax free cash. Not so ‘free’ was it?!!!
Worth saying I have also a substantial investment Isa with no advisor taxing me on it. In fact there is no advisor anymore….😂
This is extremely bad advice and no one should listen to you.
@@coderider3022 thank you for your opinion and I respect it
Awful advice, if you weren't using the pension as for iht planning, why is it suddenly a bad idea
If there is a good low cost SIPP then investing in a SIPP and the government will add 20% in as a minimum because pensions are tax free and your money has already been taxed. Higher rate tax payers can claim additional tax back as you’ve paid tax at a a higher rate.
Hopefully trading 212 will do one at the same fees as their s&s ISA as they’ve been teasing one for a while.
Thank you Toby - Please can I ask: Drip feeding £1666 over 12 months into an S&S ISA would be better to average out the highs and lows right? Instead of just banging £20k in on April 6th? And if so do you know what platforms offer a drip feed mechanism or do you have to manually buy £1666 worths of shares (index fund) every month?
Thank you your videos have been invaluable to me 🙏
Monthly is better than annually as you benefit from spreading the risk of buying at highs but it doesn’t really matter if you’re in it for the long run. Trading 212 is a good platform as you can buy fractional shares to suit your budget and you can set up a pie which allows you to set up a direct debit to auto buy what you want. In terms of funds, I use VWRP, which is a global index from vanguard and auto reinvests dividends for you. As an alternative, you could also buy a mix of VHVG and VFEG which is essentially VWRP but you pay less fees. However the only reason I don’t do that is because I would probably worry about the ratios and would therefore tinker with the stocks too often which defeats some of the purpose of the ease of investing in index funds in the first place. Hope that helps
Wow Toby just called me out I’m maxing out my isa on a 40k a year salary still living at home with my parents.
Living the dream!! 😜
Powerful thanks for advice
Welcome :)
I think that very few people can afford to max out the ISA allowance i never have been able to so its a null issue currently for me.
More of an issue is the personal allowance and the badic state pension will be very close in value soon.
Yes I think the personal allowance will have to move up with the pension, it would make no sense if it doesnt IMO, and a terrible political decision .
@@TobyNewbatt Terrible political decisions is what Labour governments are best at...don't expect it to rise anytime soon.
@@kw8757 Well then they will soon get into the embarrassing situation that ALL State Pensioners, even the poorest, will be subject to Income Tax, as the State Pension is currently only marginally below the Personal Allowance Threshold. With the state pension triple lock, its going to go above that Threshold in the next couple of years.
@@juleswombat5309 Yep...my own mum gets state pension plus a small private pension and she can't understand why she is paying more tax.
Great video as always! I have rental properties. One is paid off, the others have 2 years to go, all bought years ago. I only got into S&S ISA's at the start of this year, mostly down to watching your videos. I max out my ISA's as much as I can. I'm now starting to see the 'real' benefit of being a landlord without mortgages, but with so much red tape and tax I would strongly advise anyone doing it now. Will keep them to accelerate paying into ISA's and Pension, and ultimately additional retirement funds. They also give me more diversification but definitely don't become a landlord today, it's not worth it. Keep up the good work, your message is getting out there.
These politicians must be removed from office!
We live in a democracy. Stop talking sh*t.
Instead of cutting spending they chose to spend more and take more
🙄please. This is really not that bad, not perfect but it’s still the most sensible budget we’ve had in years
Whichever politicians are in power will still face calls to spend more on the big ticket items like the NHS, welfare & pensions, education & defence. All whilst interest on the vast debts from the 2008 Crash & consequent QE, covid spending, and unfunded public pensions eat up more & more of the spending total each year.
@@teelo523"cutting spending" led us to the mess we're in! The country is woefully under-invested in.
Cheers for the update 👍
of course Labour are going to chip away at tax relief on ISAs. If you thought this budget was 'brave' then watch with interest next year
You realise that during the last 14 years the Conservative government raised the tax burden to it's highest ever level and also reduced the allowances on dividends and capital gains to almost nothing right? They were meant to be the party of pro-business :P
You should start your own TH-cam channel, convincing people to sell all their shares, like the doomsters who were shouting at everyone that Labour were coming for their rental properties with huge CGT rises
Toby, here's your comparison.... The 20 year moving average return in property is 2%/ys vs 5.9%/yr for a balanced indexed equity portfolio. Property investment only makes sense as a means of raising investment capital in a mortage because you don't have any other sources of capital. And most UK homeowners a significantly over invested in property just by owning their own home. (data source: Smarter Investing, Edition 1 only, Tim Hale).
Labour's war on wealth.
Don't forget pensions are ony Tax free when you put your money in not so when you take it out when you have to pay tax at your nominal rate.
The war on wealth was by the tories that ran the country into the ground and destroyed growth.
Set up your pension inside an ISA.
@@JohnJones-cp4wh Ive got a ssas does it still work? Could I take profits without paying tax LEGALLY?
Where do I get started for a stocks and shares ISA?
People who has something to invest are investing but not in this country .
That's been the case for at least the past 15 years. More than 90% of UK ISA S&S, pensions and S&S's subject to CGT are invested in 1 of 4 global trackers. None of them ever have more than 5% invested in the UK.
@@methyleneblue4659 It does not matter where the money is invested, because the assets and the profits become British-owned. Moreover, many of the large UK-based companies are in effect like funds in that they comprise several pooled businesses, which may include foreign divisions, meaning that they are essentially global entities anyway. This is why their price tracks their real value in US Dollars, not Sterling. This is also why creating a "British" ISA is pointless.
Really interesting, and uplifting as we have been investing in ISA's
@@davidpoulton6976 thanks David that was exactly the message I was trying to go for! 👍
The Stocks and Shares ISA is NOT "tax free." There is a 0.5% transaction tax (Stamp Duty). This is a cumulative tax so trade your money 1.7x a month and you will have paid 10% in tax within a year!
If you buy UK shares you pay taxes that has nothing to do with the ISA…I have a solution for you. Don’t buy UK shares and use ETFs and index funds instead. 😂
If you’re trading you are playing a losing game. Stick to long term investing 👍
@@TobyNewbatt ShutTFUp.... we need idiots to trade the market to keep it going ;). Mind you we have Americans to do that for us. Great video. And not everyone understands the concept of stealth tax.
@@TobyNewbatt Yeah, stick to long term investing build that huge pot up, for when they change things just before you start wanting to take it out in 30 years time... 😁
Thanks again for another great video.
So is this the same as freezing the income tax bands…? ‘Fiscal drag’…?
Yep that’s right. Fiscal drag on ISA allowances. Similar to inheritance tax bands being frozen as well.
8:46 I should’ve waited for the whole video where it’s explained 😳
Do you paid tax on dividends if the shares are in an isa?
No that's the whole point of them :) - No tax!
Nice one Toby👍 it’s to late for me, but as it stands today i would be maxing out my ISA at the expense of my pension although it’s still wise to contribute to one. I was 2/3 pension 1/3 isa so now I’m stuffed with a pension which is now (possibly by 2027) included in my estate. Screwed my plans
I am young enough to get that Halo reference! Already have that Stocks and Shares ISA with 150k in it. Will keep toping it up with 20k a year until I retire.
Amazing work :)
This country is screwed I want to leave.
The UK is ahead of the net zero curve. Other countries will follow.
@@stevo728822 It's Real Zero. Industry is dumbsourced out
Same.
So where would you go. Definitely not EU, Canada, Australia or New Zealand. If you do find somewhere, would the want you and how long before they also change.
Grass is not always greener on the other side, UK is a great place to be. There is a reason why so many people want to come here.
Best investment I ever made was to learn everything I could about a company (in my case, what was then Tesla Motors) by reading books and watching TH-cam fan videos, and use what little cash I had saved to open a stocks and shares ISA. The forms required were not too arduous (including the form for buying shares on the US stock market) and within a couple of weeks I made the telephone call, nervously asked to buy several shares at market price (which I learned just means at whatever the price is when the order goes through), and used up almost half my ISA allowance.
Then I simply forgot about it and let it do what it had to. I had no experience in actively trading stocks, so I just forgot the password and let it rise or fall over the long term. After a couple of years, it was worth over ten times what I'd invested. I got lucky with the timing, but I also had a good feeling that would happen.
I hope to add more now while the price is still "low" because many are predicting another ten times increase by end of this decade. It's like 2018 all over again: lots of fear mongering and doubt whether Tesla can do robotaxi and humanoid robot. I think they can and will, and I'm ready to make money when the market finally catches up!
I'm favoured financially with Bitcoin ETFs approval, Thank you buddy.$28,600 weekly profit regardless of how bad it gets on the economy.
Same here., I strongly agree that the Bitcoin ETFs approval will be greatly life opportunity for us, with my current portfolio of $102,500 from my investments with my personal financial advisor Steve Miley I totally agree with you😊
YES!!! That's exactly his name (Steve Miley) so many people have recommended highly about him and am just starting with him from Brisbane Australia...🇦🇺
He's my family's personal Broker and also a personal Broker to many family's in the United states, he is licensed and a FINRA AGENT in the United States.
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The very first time we tried, we invested $1000 and after a week, we received 4500. That really helped us a lot to pay up our bills.
I think the ISA allowance is fairly generous especially if you're topping it from spare income, which is the intention. It's a filter for people investing a windfall.
Other countries have higher CGT and no ISA option.
You have sole traders paying themselves with dividends (after using up the tax free allowance of course), these people are essentially paying lower income tax even under the new rules for 50k+
This is such a socialist budget. Who voted these guys in? I def didn't
You don't know what socialism is.
@@Red1Green2Blue3 'You don't know what socialism is' - Neither do the socialists
This is really good advice. Luckily I discovered Isa about 2 years ago and I've managed to max out my Isa
It was a budget to screw the working man and making sure he never gets rich.
hardly surprising. Starmer clearly hates the working class....he not only struggles to define what a woman is but likewise has a very peculiar explanation of what a worker is!
less than 5 years until this commie lot are wiped away at the ballot box - forever.
Labour - the party keeping you working class.
Great video. Really insightful. Who thinks at some point they will make our TAX-FREE ISA’s Taxable in the near future? Or general future? What if all this time we’re thinking when it’s time to use our S&S ISA the rules are they’re taxable…. It’s a worrying thought. Also, what platforms/companies does everyone use for their S&S ISA’s, general investing… I’ve been using a company through a financial advisor through st. James place…. Is this right?
This woman is a lying liability .. get this government out.
...and the previous Chancellor knew he was leaving an unfunded £22 billion black hole in the economy, which has been confirmed by the Bank of England and OBR. Yet you have the audacity to call Reeves a 'lying liability'. You need to get some perspective after the behaviour of the last band of thieves and pirates who cast themselves as the party of economic competence. Every time they leave office the in-coming government has to deal with their misdeeds.
Tough 💩 m8 they are coming after everyone's
£££££ !
Who ever in power is going to do the same or something similar. The state continue to payout more than what its receive. Unless you feel it is time to abolish the NHS, drastically reduce benefits and paying for any care.
what about if i invested in high street group and gone in receiver how do we claim that money dose government help to recover