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It's interesting, when everything is going horribly wrong is the time where the parliament starts to close certain loopholes that, benefits themselves and opposition. Its like that family toy game "hot falling tumbling monkey family toy climbing board game" the monkeys are the loopholes and the sticks are unpredicted global events that cause crisis, it takes a few sticks to pull until you get some monkeys falling. No global events, no monkeys falling.
The government has wasted, and keeps wasting so much money on losing their (and the US) war against Russia in the Ukraine. Meanwhile the UK military has run out of weapons and ammunition And guess what? The UK generals and admirals are now asking the government for EVEN MORE taxpayer money to replenish their wasted weapons and ammo. You couldn't make it up!
The average wage will gain just over £30 a month, yet since 2022 the average wage in real terms has dropped by almost 200 a month. Let alone that disposable income is 10,000 pounds lower than it was in real terms than 2010
Hunt: The number of ISAs are too complicated! Also Hunt: Let’s create a 5th ISA that is a subset of the Stocks and Share’s ISA but is more limited in what goes into it.
Yeah, and Im also already negatively disposed to it knowing they added the LISA in similar way to now ignore it. Its starting to lead us into some government sanctioned scam territory by putting people from one inflexible dead end product to another.
@@UnimportantAcc They haven't decided properly - but I expect it will be FTSE (100, 250) and AIM listed businesses that aren't shells for foreign investment (Scottish Mortgage). Hopefully Vanguard will create a UK Dividend Stocks Accumulating ETF for this.
Reminded me that Damo used to be the floating head talking (and inspiring us) about finance - now the budget cuts reduced him to just a dark shape of a head.
Other European countries may pay more tax but they get a LOT more from it (education and healthcare). We seem to be getting taxed to death yet relying on private dentists, a crumbling NHS, and schools that are stretched to the limit (population growing but no new schools being built).
I think you’ll find that our European neighbours have been struggling about as much as we have since 2020. Public services in France, Germany etc are also shuddering. I fly to Munich tomorrow where there are widespread strikes occurring over (you guessed it) pay and conditions. This in a country that also has mandatory health insurance laws to ‘top-up’ the partially state funded healthcare. I am by no means saying that things in the UK aren’t bad, but it might be a case of ‘grass is greener’ when peeking over the channel at our neighbours on the continent..
If they had introduced a UK-invested SIPP instead based on the idea of giving newborns £10k to replace the state pension and investing that in the UK - that to me would make more sense than a UK ISA. A UK ISA giving an additional £5k is going to be largely of benefit to the wealthy - or at least those who can max out everything and just wanted a bit more headroom.
100% It's only advantageous to put money into an ISA after already investing a good sum outside of ISA's. So this will mostly benefit people who already invest sums above ~£40K a year let's say?
5:08 this exactly, watching the 2 benches fight during the budget today was disgraceful. It was like a pub debate where each team has to slander the other. Truly pathetic.
@@DamienTalksMoney Daft question but do you think the new Brit ISA will be able to move money else where after a certain amount of time? Example, could I invest 25k, so 20 in vusa and 5 in Brit isa, then next year move the 5 into vusa without hurting my 20k allowance?
@@michaelbalfour3170 no but no doubt you'll be able to invest your 'british' isa in companies which meet the nominal definition but have no british operations or exposure to GBP.
I think you summarise the sentiment of the British population very well. We, as a nation, are in a bit of a pickle with no light in sight and a reducing faith in our political system. I am glad you touch on politics even though you are a 'Finance Guru'.
Thank you for this. I try my best not to be political but sometimes the two cross over. Hard to comment on the finances and not touch on the politics behind them.
About the politicians in this country, as an immigrant from South America I expected them to be a lot more professional and serious but the debates in the parliament are a circus. A politicians job is to solve problems in the country not make anything/anybody look good or bad but all they do is trash on each other instead. A good idea/proposal is good no matter who proposed it and it shouldn't be stopped from being implemented just because the opposite party brought it up
Check out some 1970s UK history. Back then it seemed to be the Government (of either colour) vs the Unions. Around the same time we had the debate about joining the predecessor of the EU which again wasn't fought on Party Lines. Margaret Thatcher's (in her flag jumper) finest hour ?
ask yourself whose problems are they trying to solve and to whose benefit, and you'll see they work very diligently on that every day. Just not for you or me.
Such a good video Damien. Clear, unbiased analysis of the budget with an insight into how politicians put themselves and their party above the constituents. I've valued a lot of your content in the past. Think this could be your best and most important piece to date. Thank you.
SUPERB. Absolutely summed up the problem we have with binary politics: us good, them bad. Ideas should be judged on their merits not the colour of the political stripe on its back.
The bit where you said "You can't just magic money out of nowhere" made me chuckle. Isn't that what Governments have been doing since 2008 with "Quantitative Easing" and the root cause of today's high inflation ?
I wanted to catch up with the budget and for the first time I landed in your channel. I can't pinpoint it, but there is something I really like about you.
Yeah damien is a very sweet fella, been following him a while now, you should also check out his second channel ‘making money podcast’ its absolute class
There’s quite a misunderstanding around the non-dom/remittance basis rules (understandably so, as they are very complex). The remittance basis means non-doms are not subject to tax on overseas income and gains UNLESS THEY BRING THOSE INCOME AND GAINS INTO THE UK.
04:12 - You sum up perfectly what's wrong with politics across the world, but especially in the west. It's all about the next election, not the greater good. It's about staying in power and not actually using that power to make things better.
Found your channel fairly recently and and I've been watching all your videos on my commute to work. I've just created a Trading 212 account (the link worked and I got a free share with BP). I'm now setting up a stocks and shares ISA and a Junior ISA for me and my new born son so that he will already be a few steps ahead with a housing deposit etc in the future. I really appreciate the no nonsense and sensible approach to providing investing advice!
Love this Jack! Thank you mate for using my link it supports the channel and me making content people can watch for free. Well done for taking action and setting up your new born with the junior ISA you are going to smash it
Thanks@@DamienTalksMoney, appreciate the reply! Can I quickly ask, would you recommend the L&G Global Equity (Acc) or the Vanguard ESG Global All Cap (Acc)? There are so many options! UPDATE: I went Vanguard FTSE ALL-WORLD UCITS ETF for my ISA. Thanks again.
If you went from 25K in global equity fund to 20K in global equity minus UK plus 5K in UK stocks your exposure to UK would go up from about 5% to 20%. The returns from doing so 5 years ago would represent significant underperformance. However, if in the future you think the UK CGT rate will increase significantly then the Brit ISA become a competitive choice.
The solutions are: - Privatizing and liberalizing NHS. This way the service provided could improve massively and the taxes could be cut. - Cutting and freezing the State Pension leaving fiscal headroom to cut taxes even more. - Decentralizing taxes and power so cities and counties would not depend on the Government.
Thank you Damien, looking forward to all your videos on this budget 2024... thanks so much.. your delivery and narration is so slick and gets all of the points understandably to us so well.
Damien, your videos have honestly changed my life. Aware that sounds like an over statement... but it's like you've turned the lights on (sorry Birmingham) on how I look at my personal finances and how I should really pay more attention to what's going on in this country. Thank you!
I’ll take it. I already max out the £20k limit and IF this is a £5k bolt on for “British/UK” stocks, I would simply dump another £5k into a FTSE100 or FTSE250 tracker (assuming they allow this. If not, just whack it in BATS, AV, LGEN, DGE, etc)
That is a great comment Damien. My global fund would(if I maxed my ISA, I don't...) be overweight UK so maybe a mix of funds to balance that out is more optimal.
I work in residential construction. When I started my career a woman was raped in a park that, despite having the lights installed, had not been lit. It is seared into my memory. I find it galling that lights are dimmed. If in future you do more work on housing I would like to add to the way developers function and the constraints we are under. We want to make money, but a number of things make it exceedingly difficult.
Found this channel earlier on today while researching premium bonds and I’m hooked, so much great information, especially in such a shit time for the British people. Your doing great work 🙏
I work for a major Local Authority and the pressure we are under due to a lack of central government funding and an increase in homelessness, adult social care and children social care is unbelievable. The system is at breaking point.
Yes but it's developed world only and misses emerging, and small caps. Global all cap ex UK would be good. However since the UK is just 4% of the global market, to avoid being over exposed to UK globally, on £20k, you could just put in £800,. Still a tiny bit more headroom!
@@ameeno Yes this is true but you get the tax break on the way in and if you use a combination of ISA & Pension you can take a fair bit of income with no tax
Increasing the isa limit does sod all to help people near the breadline like me. I'd bloody love to have a spare 5k a year to stick in savings let alone 25k.
Hi Dan. Sorry to hear finances are tight for you mate and I hope my video didn’t come across as insensitive. I try to cover finance from all views points as their is a very broad range of people who watch my channel. I will say that the other reforms hunt proposed around pensions was to skim 5% off work based default schemes. This will affect anyone in those funds and that will mostly be hard working people who will rely on that in later life. If the Brit isa was in anyway an alternative to those reforms I welcome a solution where there is choice of over mandated grabbing of funds.
@@DamienTalksMoney Oh nah not insensitive mate. I wasn't referring to anything you said personally. You're just doing your job! Fully appreciate your work!
Indeed, the BritISA is useless for most people who can't raise £20k a year for a normal ISA right now anyway, and who would invest in BritISAs over standard ISAs where you can go Global/S&P500? People are saying that GIAs, after tax, will likely be better, given the FTSE stasis since Brexit, although I haven't done the sums there. NI drop and child allowance clawback threshold raises help a few people, but otherwise, nothing.
I'm lucky enough to be doing alright for money (3x national average salary), but I've never hit the ISA limit. (Came fairly close last year, nowhere near this year). The only people benefitting from the extra £5K will be... see if you can guess... drumroll... rich people! Who would have thought.
On £15,000 per year, NI changes since last Autumn will save you £8.10 pcm in 24/25. But frozen tax thresholds next year mean you pay £56.24 more across income tax and NI than if they had increased with inflation. So your take home pay is £48.14 less EVERY MONTH.
I'm a fan of the British ISA, would've preferred to have the option of where to put ISA money with an increase. But at least the Brit ISA helps the British economy somewhat
When PEP’s , forerunner of ISA, didn’t you have to invest in something like 80% British companies - well in those days it was funds that held 80% as I don’t think you could invest individual stocks. For the very reason of getting the UK public to invest in the UK
Its a good initiative to allow people to have UK dedicated ISA allowance, maybe they should put a little more incentive to it. The problem with USA stocks that it has a massive bias: People globally buy USA stocks because its a USA stock. Many industries have this issue. They cant even get the chance to shine, because people rather buy a bad USA stock than getting anything else. Many Canadian companies to have better chance register at the USA stock market now while they operate in Canada... FTSE gets the same issue. As you stated, why bother to buy FTSE when with the same click you can get SNP500 that have better return...? But this is exactly the reason why FTSE stays behind because they are "undesirable"
FYI 'highway' in that BCC statement isn't an Americanism to be translated to 'motorway'. The highway is any local authority managed thoroughfare, including pavements and verges, up to the boundary of private property. Great vid as usual
Still no mention of the 100-125k 60% tax trap which is ridiculous. Just diverts money from being in pockets/fed back into the economy to being locked away in a pension - as such, benefits no one apart from pension fund managers.
The downside of the child benefit fix might be that parents stop using salary sacrifice into pensions to avoid the clawback. I wonder if we’ll see pension contributions go down.
Well, as with the first 2% cut in NIC, it helped me increase the voluntarily pension contributions by 2%, this will now happen again. 2% drop in taxes, 2% increase in pension, the more cuts the more I'll invest in my future.
Feels like it's been a while since I've seen one of your political videos, so I'd forgotten you do them, but I do enjoy them given that your channel is on strong foundations of good practical financial information
Great video bud, just want to clarify(at least by my understanding) the figures for the child clawback tax, is if you have one child and earn 60k , you are in effect taxed at 60% , but if you have 2, its upto 70 odd
Another great video Damien. Just want to say thank you for all of the effort you put into creating informational and entertaining content. Since watching your channel and listening to Making Money Podcast, I transferred my workplace pensions from old jobs into one lower cost account and given retirement more thought. Last year I maxed out my ISA allowance and already managed to set some extra aside for next years allowance. Once again, thanks for everything! Keep up the great work 💪
What is the definition of a British Company ISA? It's actually quite hard to find funds that are actually 100% British. I mean it's hard enough to decide if a ship being targeted in the Red Sea is British. I reckon a fund which contains at least 80% British might suffice. But then again it's politicians pushing this so it's never going to be a common sense approach.
All I want is for the state pension to stop being a Ponzi scheme, and have actual investments which you get back at retirement, or the setup of a wealth fund for the country.
Hoping that investment trusts that invest abroad will be permissible in the British ISA. If not, would UK private equity be worth a shot instead of the historically struggling FTSE 100 / FTSE 250 ?
Local services are vital to some of the most vulnerable in our society. For example, meals on wheels, dance sessions, chat and heat hubs, food bank vouchers.. Councils cannot just continue to be cut.. The guys in Westminster don't use these essential services, so why would they care if they were eliminated?
I think one of the biggest problems for politicians will be that people like Damian provide the basic financial education people need, and hence they look at what politicians do, and suddenly realize how much they are shafting everyone.
The British Isa sounds like it will be for the better off if it ever gets implemented… I think few people can max out their ISA, pay towards a pension and still have £5000 left to invest in a British Isa.. because of this it’s probably for people with a spare £50,000 plus a year to invest… that is certainly not the help I he average person was looking for in the budget
I may not be the first to suggest this, so apologies for any duplication. I cannot imagine that the majority that save in ISAs are able to max them out each year, so the benefit (or not) just goes to the wealthy again. The only way that it will significantly benefit UK companies is if the £5k BritISA is a mandatory gateway to the £20k stocks and shares ISA. That's a big change and, given the poor recent performance of the UK stock market, it would meet with huge resistance.
i think if you have money to burn the Brit ISA might be interesting but for most people its a bad idea. If you had picked up on GSK the one tiome in 20 years that it has outperformed great, or AZN 4 years ago. For the most part though youy will underperform. A semi active approach might work, but for most people it won't really be worth it.
All well and good proposing these new products LTAF’s, UK ISA, assumes there is a market and it’s worth the investment for the firms to build and market these products. If an adviser recommended a 100% uk equity investment FOS would likely uphold a suitability complaint in many cases. Government policy and regulatory risk appetite pulling separate directions.
Hey Damien, i love the content man, the missus & I often listen to the podcasts when on long journeys and love them. Can i make a suggestion for a video please, I know the 'best isa or sipp in 202X' has been done to death, but i think a deeper dive into the functionality is often missed. Yes, costs are very important, but i started a SIPP with AJ Bell and are more and more frustrated with the fact that i can't place limit orders on US stocks or they don't allow pre or post market trading, and it seems like trailing stop losses simply don't exist on most platforms, even on my 212 ISA. I'm far from an experienced investor and i know some of these things relate more to traders rather than investors, but i would guess that there are a good number of us out there that are somewhere in the middle! Rather than putting every penny saved into a global etf. Just an idea, Cheers for all the education, from another Damien who lives on the nicer side of the Pennines 😄
Well Done Damien. The chancellor drags his feet when it comes to ISAs and everything else. He is nothing like George Osborne when it comes to raising ISA allowances. The British ISA will take a long time to get implemented if it ever does. Also is the £5,000 limit worthwhile after commission? And when it comes to the Non Doms. It is being abolished but replaced with a new unknown scheme. No deadline for this either.
"thats the game isn't it" - IMO thats exactly the problem, they treat it like a game. They often sound like children in the house of commons. An increase to the amount you can put into an ISA is about as useful as a chocolate teapot if you dont have that amount of money to put in.
Pensions or Politicians, who do we trust the least to secure our future? I don't feel any more hopeful now, than I did in the 1979 when I left school and 3.5 million were unemployed. Great video.
Great video as always Damien but I am surprised that you didn't mention the reduction in capital gains tax on house sales from 28% to 24%. I am personally outraged by this. It is yet another tax break that guarantees that individual wealthy people keep more of their money justified by a "promise" that this will bring in more tax money overall. I would love to know what Gary Stevenson thinks about this.
The capital gains threshold reduction was the last straw for me. Even people trying to make small profits will face the prospect of doing a tax return.
@5:42 That's rich coming from Jeremy "Bulk Discount" "Honest Mistake" Hunt and his 7 450k-1m apartments. (Same reference twice in a week...well if the shoe fits...)
U.K. ISAs will be (unexpectedly) complex. Tracking it will be a minefield. They are yet to truly quantify entry criteria but when they do it will be painful. Every ETF will need to be exploded out and mapped to geography and incorporation. We know, for example, VWRL wouldn’t qualify and IUKD would. Yet what about thematics? What about those a bit more dynamically constructed? Do we need to analyse it daily? Well, yes. You kinda do now for ISAs and look how that has gone for T212 who screwed it up massively with stocks like NIO. What about OEICs that don’t disclose daily? Help. Send prayers. We’re all in the dark.
Recommend books like 'How Westminster Works and Why it Doesn't' by Ian Dunt and 'Politics on the Edge' by Rory Stewart for a good look inside how broken the UK political system is and how this ultimately trickles down into the short term political mindset and poor governance.
Managing a clients risk as a financial adviser is a big thing. Having £5,000 into UK equity will throw out the diversification and increase risk. How do you reduce the risk without fund picking and loosing exposure to other equity markets?
Use a global fund with an Ex UK component and then buy a UK focused fund as the weighting in the Brit ISA. But this would defeat the purpose of the allowance i guess.
@@DamienTalksMoney our firm won’t allow us to fund pick anymore in a particular asset class as we are not discretionary managers. Either way, too much weighting in UK. From my perspective, only my higher net worth clients could use this as they are likely to be in a bespoke portfolio with a discretionary manager.
As for bham Council. Have a look at which ethnic minority has been clever to manipulate the benefit system and get support regarding special needs. Maybe then ppl will understand why funds have been depleted
Brit ISA .. no thank you. Back of the queue behind SIPP and regular ISA anyway, and I'd rather just pay the CGT on US equities that actually make money than British companies that make nothing. The tax on nothing is nothing. What does a British ISA even do?
Blatant bull! I agree like the rubbish around 15 hour free childcare for 2+ year olds coming in april to help families struggling with child care costs. Only they only cover term time so this needs to be pro rata across the 52 weeks a year. Then suddenly all the council run nurseries and preschool have put their costs up by exactly the same amount you'd be saving. Which leaves families with no help when they are struggling with child care.
