Beat the budget: a five-point action plan to help you manage your cash

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Budget Busters: 5 Ways to Save You Money

The latest budget has brought about several changes that could significantly impact how you spend and save your money. To mitigate these effects, experts recommend considering the following strategies.

1. Use Your ISA Allowance Wisely

With the £20,000 annual limit on payments into tax-efficient accounts remaining but with a change in rules from April 2027, it's essential to use your ISA allowance before then. From next year onwards, only up to £12,000 can be put into a cash ISA, and anything above that will have to go into a stocks and shares ISA. This means you need to act fast while there are still strong rates available.

2. Switch to an ISA

The rise in income tax on dividends could significantly impact your investments. To avoid this, consider switching your shares into an ISA as long as you have enough of your £20,000 allowance left. This process is known as "Bed & Isa," and it involves selling off the investments and then repurchasing them within an ISA wrapper. However, do note that any future growth or income from these investments will be protected from Capital Gains Tax (CGT) and dividend tax.

3. Review Your Salary Sacrifice

The weakened benefits for employees who pay part of their income into a pension via salary sacrifice may affect you. With almost three-and-a-half years to make any changes, it's essential to review your contributions and consider increasing them if possible. You can also explore other salary sacrifice schemes offered by your employer, such as the Cycle to Work scheme or leasing an electric vehicle.

4. Give Gifts While You Can

The extension of inheritance tax (IHT) thresholds means that for those who might be affected, spending and giving away more money could reduce the bill. There are various allowances you can use to give tax-free gifts, including a £3,000 allowance per year and an additional £250 allowance per person for gifts made in one calendar year.

5. Weigh Up the Mansion Tax

The new high-value council tax surcharge, or "mansion tax," will hit owners of properties in England worth more than £2m. While this charge won't take effect until 2028, it's essential to consider your options now. Some experts predict a correction in property prices and potential impact on homes below the £2m mark, which might alleviate some concerns. However, bringing forward plans to downsize could be an effective way to avoid paying the tax.

By considering these strategies, you can better manage your finances and make the most of the changes announced in the latest budget.
 
🤔 just got my head around this new budget and it's clear we need to get smart with our money ASAP 🤑 so many changes coming in 2027 that'll affect how much i can put into an ISA and some other schemes... gotta start reviewing salary sacrifices and exploring other options too 💸 what really caught me though is the mansion tax - £2m+ properties are gonna be hit hard 🏠 thinking of downsizing or waiting it out? not sure which way to jump yet 🤯
 
📊💸 I'm not sure if anyone's even thinking about their ISAs anymore 🤔. With the £20k limit coming down to £12k in 2027, it's like they're just setting us up for a big tax bill later on 😬. Anyway, here are some wild stats:

* In 2024, £3.5 billion was invested into ISAs alone 🤑
* The average annual return on ISAs is around 2.5% - not bad, but you gotta be in it for the long game 💸
* With the 'Bed & Isa' strategy, you can potentially save up to £10k by switching shares early 🤩

I mean, I guess it's always good to review your salary sacrifice too 😊. Did you know that pension contributions can make up a whopping 35% of an employee's take-home pay? 📈
 
I totally get why people are stressing about their money right now 🤯 with all these changes coming into effect next year and stuff... it's like they're pulling the rug from under our feet kinda thing 💸 but at least there are some solid tips to save us some cash! I mean, who doesn't love getting that extra £3k per year for gifts? 🎁 and switching those shares into an ISA sounds like a no-brainer if you ask me... just make sure you know the rules about CGT and dividend tax or it could end up costing you more in the long run 💸 anyway, let's all just take a deep breath and try to plan ahead instead of freaking out 😅
 
🤔 The recent budget changes are definitely making me think twice about how I spend my money. One thing that really caught my attention is the change to ISAs. With the limit being reduced from £20,000 to £12,000, it's super important to use up as much of that allowance before April 2027, especially if you're getting good interest rates.

I've been looking into switching some of my investments into an ISA as well because of the increased tax on dividends. It's a bit more involved, but basically you sell your shares and then re-buy them within an ISA wrapper, which can be a smart move to protect yourself from Capital Gains Tax and dividend tax.

I've also been thinking about reviewing my salary sacrifice contributions because of the weakened benefits for employees who pay part of their income into a pension via salary sacrifice. It's great that I have almost three-and-a-half years to make any changes, so it's definitely worth exploring other options like the Cycle to Work scheme or leasing an electric vehicle.

Giving gifts while you can is also a good idea because of the extended inheritance tax thresholds. Having those allowances means you can give tax-free gifts, and £3,000 per year is a pretty generous amount. Just make sure you keep track of what you've given so it doesn't affect your IHT bill later on.

The mansion tax surcharge for properties worth more than £2m is an interesting move, but some experts are saying that there might be a correction in property prices or even a decrease in homes below the £2m mark. If that's the case, bringing forward plans to downsize could be a great way to avoid paying the tax altogether.

Overall, these changes definitely require some careful planning and consideration, but with a bit of research and planning, you can make the most of them and save money 📈
 
💡 I think it's a good idea to start using up those ISA allowances ASAP since they're gonna get stricter next year 📊. And for those who have shares that are about to hit tax, switching 'em into an ISA before 2027 is key 🔒. But honestly, what really caught my eye is the mansion tax thing - if you can afford it, maybe consider downsizing instead of paying more council tax? It's like, if property prices drop a bit (and let's be real, they might 😏), it could be worth it to avoid that extra bill 💸.
 
I remember when ISAs didn't have those crazy rules 🤯. I used to put all my money into cash ISAs, and it was a no-brainer. Now it feels like they're just messing with us, changing the rules every few years. And what's up with this "Bed & Isa" thing? It sounds like a real pain in the neck 😬. Switching investments just to avoid paying taxes? I don't know, guys...seems like a lot of hassle for not that much gain.

And have you seen those inheritance tax thresholds lately? 🤑 It feels like nobody's getting any younger, and suddenly there's more money floating around. No wonder everyone's trying to spend it all before they kick the bucket 💸. I remember when my grandma used to gift me a few quid every now and then; now it's like she'd be crazy not to give away everything before she's gone 🤦‍♀️.

And don't even get me started on this mansion tax thing...🏠 What's the point of paying more taxes just because you're unlucky enough to own a mansion? I mean, I've got friends who are just trying to hold onto their homes without losing the plot 😅. It feels like the government is always coming up with new ways to squeeze us for cash 💸.

I guess it's all about being smart and adaptable these days...but sometimes I wish things were just a bit simpler 🙄.
 
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