Finally! The tax free savings allowance is increasing

[@AVTR]

I dont believe the UK government can ever be trusted to act in the interest of the people. Thanks for a great video as always! 😊

[@surfingtheapocalypse]

Love your face superimposed on the £50 note lol 🤣 x

[@keithclunk3125]

I would welcome the British ISA as it allows more to be tax sheltered annually. I retired at 49 years of age (12 years ago) and have been living off rental income. I intend to liquidate the property soon but am limited to how much can be tax-sheltered per year. UK Gilts in a GIA are one thing, but I'd also like a place to park UK ITs for the income as I have some of those already in my S&S ISA, leaving more space in the regular ISA for global investment. So many people are too quick to poo-poo this idea just because it does not suit themselves. Perhaps one day in the future it might.

[@riddlergorshin]

Or simply scrap that annoying stamp duty when most uk shares are purchased? That would be enough I reckon.

[@stephenmatura1086]

On a £5k investment you'd only save £25. Better than nothing but hardly a life-changing amount.

[@nick255]

@@stephenmatura1086yeah for the individual its not a massive amount but it could incentivise more investment into uk equities by entities with larger amounts of money

[@gavjlewis]

They may as well call it the £5k Dividend ISA as I suspect thats what it will mainly end up being used for. Personally I might use it to diversity my portfolio as I currently dont have any UK investments in my portfolio with my main fund being an ex-UK fund. I think most of the people who will use it will already use the current £20k allowance and remove UK assets from that allocation and use the £5k instead. I guess UK under performance is better than no performance by not investing in the first place.

[@zerosumequation]

NO, I won't be investing in the UK stockmarket - I'm out!

[@kevinrichards6506]

Will we take advantage of the new British ISA ? Very much going to depend on the detail. Currently have S&S ISA happy in the knowledge that I can transfer that gradually in to a Cash ISA if needed. To make UK ISA work for UK I suspect it'll be a binary "in" or "out" so I don't think it'll be attractive until everything else is max'd out. Waiting for the details ..........

[@benking9593]

Great video again Dianne. I really can't see the British ISA taking off, as you pointed out, most of us don't fill the 20k allowance, never mind 25k. As so few people will be able to benefit from this, the benefit to British companies will be minimal too.

[@DianneSullivan]

Good point!

[@johnforrest4373]

British ISA would be good for parking maybe a single British IT in, keeps tax complications away!

[@timg1246]

I suspect it will be quietly forgotten by the time the election is out of the way. Governments forcing allocation of capital is never a good idea. For those rich enough to fill £25,000 ISA allowance, many will simply use the British ISA for that portion they wanted to invest in the UK anyway.

[@geoffharris9396]

If they allowed the 5000 extra isa allowance to be held in cash more working people would invest but of course they won't do that, instead you take all the risk investing in the UK and at the moment only the well off can take the risk. Its very much a Tory ploy to kick start investment in UK but doesn't help average or low earners.

[@johnristheanswer]

` normal , working ` people don`t invest £20k a year as it is now. They only earn just over that after tax so it would be virtually all of their income. The extra £5k means nothing as it won`t ever be used.

[@simplewelshman]

Hi Dianne, what do you think about keeping a portion of your wealth in gold?

[@SirHargreeves]

If we assume the 800,000 people who maxed their S&S ISA would also max the further £5,000 allowance, that’s an extra £4billion going into British equities per year. Not a bad plan by the Government.

[@Benzknees]

Assuming Labour don't cancel the ISA tax break once they get into power. They've signalled a shift from taxing income to taxing capital.

[@davidplanet3919]

Thanks Dianne. I don’t think it will actually be an ISA to prevent it being transferred to another ISA and reinvested in non UK stocks.

[@kw8757]

Yes, good point, they're not going to let you keep it in some duff fund for 12 months then move it to a fund with good potential, we're just the little people. Doesn't matter anyway this "ISA" isn't going to happen before the Tories get annihilated at the forthcoming election, they're an utter shower of shit, and I'm usually a Conservative voter.

[@gavjlewis]

It will be an ISA just in a separate pot like the LISA. So you will only be able to transfer it to another provider that supports the British ISA and invest it in the pre selected stocks or funds. What's a more interesting question is it one of the British companies you invest in becomes not a British company with say a buyout? One would presume you can keep your current allocation but it will be removed to purchase further stocks. Funds I guess would sell the stock at completion and rebalance.

[@davidplanet3919]

@@gavjlewisThanks, I am sorry I missed your reply. There has not been any news on the consultation into this and may not be a priority now for the new govt. I agree there is no simple way to say if a company is British when some of the revenues are international.

[@porschecarreras992cabriole8]

I guess it will be the last option. First you max your standard isa and pension and if any spare cash are left you may decide to put there too. But not easy to save 80k in a year

[@denisedeakins4828]

An interesting enough concept but will it really pay for consumers to focus on UK only businesses or is it just beneficial for the companies themselves. We will see when/if it is released.

[@advicegap]

It will be good for BR providers as AIM is expected to be included. Also the diversification thing isn’t really an issue most portfolios will be at least 20% uk, so when aggregated with the normal ISA you can get that mix. I am not sure it will meet the policy objectives to increase exposure to the UK, just allow people who invested anyway to save more tax free.

[@johnristheanswer]

It`s a good idea in that 70% of FTSE 100 company profits are made outside of the UK. You wouldn`t really be investing in the UK and have a further £5k tax free to invest ` globally `.

[@MrFriskyWhiskey]

Personally, I quite like the idea of a British-Biased Investment ISA. Why should we have to 'offshore' our hard earned savings into a US Index like the S&P500 to generate profits via Capital Gains and then 'onshore' our income. That's a tragic way to build up wealth in an economy. Having a LISA 'capped' at £4000 makes saving just that little bit more 'achievable' and realistic. Honestly, who can really afford to squirrel away £20,000 a year? I've only just recently 'dabbled' into Stocks and Shares but despite the 'impressive gains' I can't afford to take a hit from losses. At least with a Cash ISA, LISA and Innovative ISA there is NO Risk in losing your capital. Although, I'm not 100% on the Innovative ISA. Perhaps someone can correct me?

[@pip1723]

British isa I'll give it a miss .

[@mark_tolver]

Kinda sounds like you’re not British, in which case, as it’s basically a tax wrapper for British residents it would kinda be pointless for you to have it in the first place dufus. 🙄

[@GG5150]

Thanks Dianne, good info.

[@gonzinigonz]

I've had a stock & shares ISA going for years but i can't easily access it to make payments into it. Its a scottish widows one, share prices have increase but it not a good time to buy more shares in light of that. It shows up on the online banking but can't do anything with it.

[@OneAndOnlyMe]

I doubt the proposed change will come into effect. More likely Rachel Reeves will keep things simple and increase limit on regular ISAs.

[@johnristheanswer]

If they get in of course.

[@OneAndOnlyMe]

@@johnristheanswer I have a five figure bet on it.

[@johnristheanswer]

@@OneAndOnlyMe At what price ?

[@OneAndOnlyMe]

@@johnristheanswer £10k

[@johnristheanswer]

@@OneAndOnlyMe At what price ?

[@mrscreamer379]

So if I have already saved £20,000, and at this point i must be a higher tax rate payer to be saving that kind of money, so £60,000 into the pension, and £20,000 into the wife's ISA and £9000 into the twins junior ISAs ... yes ... an extra £5,000 is just what I needed. £5,000 into a stock market that has gone sideways for 20 years. Its frankly the stupidest policy I can think of. No one is going to use this. Few would need it, fewer would want to put their money into the FTSE.

[@BaileyMxX]

That's the whole point, it's for those flush with cash to be forced into UK equities. Companies are leaving the FTSE galore, pension funds are pulling their weighting from the UK market and asset strippers waiting in the wings to take their pick of British companies. This along with the stamp duty (rumoured to be in line to be cut as well) are all the government can come up with to try and entice(force) investors back into UK equities. Will be a forced tax wrapper for the wealthy. As for going sideways for 2 decades you clearly haven't factored in the high dividends the British market pays out. The FTSE markets returned a little under 8% a year since inception so certainly hasn't been a case of gone no where at all 😂

[@BaileyMxX]

​@@mrscreamer379now open your eyes and add in the dividends. You'll find that longterm it's actually returned a little over 7% in monetary terms in total returns.

[@MAXERNEST]

@@mrscreamer379 Hello i have a small uk portfolio , and i have invested In the FTSE 100 and some in the FTSE 250, also i have a couple of ETF`s , i am getting a small return from these stocks ,reason i did this was that the banks were paying hardly anything at all, i would check out a a bloke called the compounding investor on here , lets say i wish i had started when he did :}

[@johnporcella2375]

No, you do not need to be anywhere near a higher rate taxpayer to save £20,000 in an ISA! Take my case...my earnings are presently zero, so I do not even rank as a Basic Rate Income Tax payer, but have inherited cash that is in excess of my needs, so have put it in an ISA.

[@mrscreamer379]

@@johnporcella2375 This is about annual limits. Is a wealthy relative of yours going to die in mysterious circumstances every single year, or can we assume the £20k annual limit isn't for your specific use case? Its about earned savings ... savings that are income taxed.

[@Trekwithmatt]

I think Labour will scrap it

[@googleuser795]

Nope it isn't

[@Richard-q1]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Marten_t]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

[@Richard-q1]

@@Marten_t However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@Marten_t]

@@Richard-q1 Oh please I’d love that. Thanks!

[@Richard-q1]

@@Marten_t Clementina Abate Russo is her name

[@Richard-q1]

Lookup with her name on the webpage.

[@markcherry5474]

just checked Fundsmith portfolio. 5.44% in UK equities. If Terry Smith isn't finding good value in UK companies to meet his criteria, I think I'd have to give this a miss.....

[@BaileyMxX]

The same Terry Smith who has heavily underperformed the market the past 3 years?

[@markcherry5474]

@@BaileyMxX If I want that short term performance, I would not be looking to Terry Smith fundsmith. He is long term investor. And look at what has driven the market over the past couple of years. Let's see how those stocks all perform long term. One is scheduled to fall by 75%!

[@BaileyMxX]

@@markcherry5474 bet you can't pick which one falls by 75% and when. Hence the reason you're likely longterm better off in indexes. Even the great Terry Smith managed to somehow lose money on his Amazon trade, bought high, sold at its lows to then see it rocket back again after he offloaded it, long term hold I thought you said? Huge margins on AWS,compounder, loves MSFT for same reasons.

[@riddlergorshin]

Mate if you can’t find value and growth in the uk you’re not looking hard enough or even at all. Some of the best performing stocks have been from the uk. Most offer share price growth and tax free dividends.

[@johnristheanswer]

@@markcherry5474 "scheduled" , which one ?

[@johnporcella2375]

I like to invest in BP. Perhaps I could do that in a British ISA and diversify in my Stocks and Share ISA?

[@Mrtrc33]

I think the only way this would work, is making poeple invest a quarter of their investment into uk stocks . Then that could boost the economy?

[@Petersworld77]

Is it a coincidence that the wealthiest put their money into S&S ISAs or are they wealthy because they put their money into S&S ISAs? Just asking for a friend 😂

[@martinmowbray4304]

It’s still tax free savings.

[@janeknight3597]

It will never happen. More word salad from Mr jam tomorrow - maybe

[@BaileyMxX]

To an extent investing in the FTSE100 is diversified globally considering 80% of their revenue streams are from outside the UK? The reason for the underperformance would stem more from the fact the index is primarily banks, insurance, oil and mining companies very mature companies and very little exposure to high growth sectors like tech that the US and thus heavily weighted to US global funds have benefited from.