A quickie today to let you know that the price of stamps is rising again on Monday 7 October 2024. That is the second price rise this year, after they also went up in April.
On this occasion a standard first class stamp is going up from £1.35 to £1.65, an inflation-busting 22%. The price of sending a large letter is going up even more, from £2.10 to £2.60. That’s an increase of 50p or 24%.
One bit of good news is that the price of sending a standard or large letter by second class post is not increasing this time. That remains at 85p and £1.55 respectively.
Standard letters can weigh up to 100g and measure a maximum of 24cm x 16.5cm x 5mm. Large letters can measure 35.3cm x 25cm x 2.5cm but still have to weigh under 100g. If they weight over 100g, higher rates apply, and if they weigh over 750g they have to go at parcel rates.
The cost of many of Royal Mail’s ‘Signed For’, ‘Special Delivery Guaranteed’ and ‘Tracked’ services will also rise from 7 October, as will the price of sending parcels first and second class. You can see a full list of prices by clicking here (PDF).
Saving Money on Stamps
So is there anything you can do to mitigate the impact of the latest price rises?
Well, my number one recommendation is to stock up now while stamps are still at the old price. Standard and large-letter stamps don’t have values printed on them and will still be valid after the October price rise comes in. If you can afford to buy (say) 100 standard first-class stamps and 100 large letter first class stamps, that will save you an impressive £80 in total.
The best bet for buying stamps is – of course – your local post office. If you don’t have one near at hand, however, you can also buy in bulk from The Royal Mail Shop (minimum order £50 for free delivery)..
Amazon also sell postage stamps, though costs vary and when I checked some prices were significantly higher than at post offices. But they may be worth a look, especially if you are an Amazon Prime member.
Another option you could consider is the online auction site eBay (search for “new UK stamps”). There can be good savings to be made here, but check reviews and ratings carefully and be wary of offers that are clearly too good to be true.
I’ll begin as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).
As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £24,525 (rounded up). Last month it stood at £24,237, so that is an increase of £288.
Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,937 compared with £3,895 a month ago, a rise of £42. Here is a screen capture showing performance over the year to date.
Finally, at the start of December 2023 I invested £500 in one of Nutmeg’s new thematic portfolios (Resource Transformation). In March I also invested a further £200 from ‘Refer a Friend’ bonuses. As you can see from the YTD screen capture below, this portfolio is now worth £772 compared with £769 last month, a small rise of £3.
As you can see from the charts, August was generally a decent month for my Nutmeg investments, despite a hiccup early in the month. Their overall value has risen by £333 or 1.16% since the start of August. They are also up by £2,919 or 11.08% since the start of the year.
You can read my full Nutmeg review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last eight years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs), Lifetime ISAs and Junior ISAs as well.
Note that I am no longer an affiliate for Nutmeg. That means you won’t find any affiliate links in my review (or anywhere else on PAS). And you will no longer see the no-fees-for-six-months offer I used to promote as an affiliate. However, the better news is that you can still get six months free of any management fees by registering with Nutmeg via my Refer a Friend link. I will receive a gift voucher if you do this, which is duly appreciated
Don’t forget, also, that the current tax year began on 6 April 2024 and you have a full £20,000 tax-free ISA allowance for 2024/25. In a change to the rules, you can now open any number of ISAs with different providers in the same tax year, as long as you don’t exceed your overall £20,000 allowance. So opening a stocks and shares ISA with Nutmeg won’t prevent you from also opening one with another S&S ISA provider (should you wish to) later in the financial year.
Moving on, I also have investments with the property crowdlending platform Kuflink. They continue to do well, with new projects launching every week. I currently have around £833 invested with them in 7 different projects paying interest rates averaging around 7%. I also have £40 in my Kuflink cash account.
To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.
There is now an initial minimum investment of £1,000 and a minimum investment per project of £500. Kuflink say they are doing this to streamline their operation and minimize costs. I can understand that, though it does mean that the option to test the water with a small first investment has been removed. It also makes it harder for small investors (like myself) to build a well-diversified portfolio on a limited budget.
One possible way around this is to invest using Kuflink’s Auto/IFISA facility. Your money here is automatically invested across a basket of loans over a period from one to five years. Interest rates range from 7% to around 10%, depending on the length of term you choose. Full up-to-date details can be found on the Kuflink website.
You can invest tax-free in a Kuflink Auto IFISA. Or if you have already used your annual ISA allowance elsewhere, you can invest via a taxable Auto account. You can read my full Kuflink review here if you wish.
Moving on, my Assetz Exchange investments continue to generate steady returns. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.
Since I opened my account, my AE portfolio has generated a respectable £200.41 in revenue from rental income. Capital growth has slowed, though, in line with UK property values generally.
At the time of writing, 10 of ‘my’ properties are showing gains, 6 are breaking even, and the remaining 17 are showing losses. My portfolio of 33 properties is currently showing a net decrease in value of £43.69, meaning that overall (rental income minus capital value decrease) I am up by £156.72. That’s still a decent return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.
The overall fall in capital value of my AE investments is obviously a little disappointing. But it’s important to remember that until/unless I choose to sell the investments in question, it is largely theoretical, based on the most recent price at which shares in the property concerned have changed hands. The rental income, on the other hand, is real money (which in my case I’ve reinvested in other AE projects to further diversify my portfolio).
To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned (especially after Kuflink raised their minimum investment per project to £500). You can actually invest from as little as 80p per property if you really want to proceed cautiously.
As I noted in this recent post, Assetz Exchange is particularly good if you want to compound your returns by reinvesting rental income. This effectively boosts the interest rate you are receiving. Personally, once I have accrued a minimum of £10 in rental payments, I reinvest this money in either a new AE project or one I have already invested in (thus increasing my holding). Over time, even if I don’t invest any more capital, this will ensure my investment with AE grows at an accelerating rate and becomes more diversified as well.
My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate]. Bear in mind that, as from this financial year (2024/25), you can open more than one IFISA per year.
In 2022 I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).
In January 2023 I added to this with another $500 investment in one of their thematic portfolios, Oil Worldwide. I also invested a small amount I had left over in Tesla shares.
As you can see from the screen captures below, my original investment totalling $1,022.26 is today worth $1,303.27 an overall increase of $281.01 or 27.51%.
As you can see, my Oil WorldWide investment is showing 12.85% profit. That’s okay but not spectacular. Obviously my copy trading investment with Aukie2008 has been doing better. The Oil WorldWide port was recently rebalanced by eToro, so I hope this may boost its performance. The investment team at eToro periodically rebalance all smart portfolios to ensure that the mix of investments remains aligned with the portfolio’s goals, and to take advantage of any new opportunities that may present themselves.
You might also notice that I have a small holding in Prosus NV, a Dutch internet group. To be honest I don’t understand how I acquired this, but it may be connected to my copy trading investment with MIke Moest (who is Dutch). In any event, I am happy to have it in my portfolio as well!
eToro also offer the free eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here. Note that it can also serve as a cryptocurrency wallet, allowing you to send and receive crypto from any other wallet address in the world.
I had three more articles published in August on the excellent Mouthy Money website. The first is Win Fame and (Maybe) Fortune as a TV Quiz Show Contestant. This can be an exciting and occasionally lucrative pastime. I revealed how to find opportunities and apply for them. I also explained how the auditioning process works, and offered some tips on how to boost your chances of success.
Also in August I revealed my Ten Top Tips for Working From Home. This is something I’ve done for over 30 years now, so in this article I set out my top ten tips based on my experience. If you have recently started working from home, or expect to do so in future, you may find this article helpful.
Finally, I wrote an article titled How Understanding Cognitive Dissonance Theory Can Help Us Manage Our Finances Better. This article drew on my experiences of studying psychology back in the 1970s. Developed by psychologist Leon Festinger in 1957, cognitive dissonance theory explores the discomfort we experience when we simultaneously hold conflicting beliefs or attitudes. By understanding this, we can gain insights into our financial behaviour, helping us make more informed decisions and achieve better financial results.
As I’ve said before, Mouthy Money is a great resource for anyone interested in money-making and money-saving. From the variety of articles published in August, I particularly enjoyed How to Save Money on Your Home Removal by regular MM contributor Shoestring Jane. Jane writes mainly about money saving and frugal living. You can see all of her articles for Mouthy Money via this web page.
I also published several posts on Pounds and Sense in August. Some are no longer relevant due to closing dates having passed, but I have listed the others below.
In these challenging times, we all need to ensure our savings stretch as far as possible. So in How to Maximize Your Savings Interest l set out a range of tax-free allowances you can use to help do this. They include the Personal Savings Allowance (PSA), Starting Rate for Savings, Individual Savings Accounts (ISAs), and various others.
I also published How to Win Cash and Prizes in Online Competitions. This can be another tax-free way to boost your finances! In this post I revealed how to find online competitions to enter, why you should set up dedicated ‘comping’ accounts, how to identify potential scams, and more. Good luck if you decide to try this 🤞
As we all know Labour achieved a landslide victory in the general election, and it appears that austerity measures are on the way now. So in How to Reduce the Impact of Tax Rises in Rachel Reeves’ First Budget, I set out some recommended steps to try to protect your finances in the months (and years) ahead. The Chancellor’s first budget is scheduled for 30th October 2024, with tax rises and cuts to public services widely anticipated.
Finally, in August I published What Alternatives Are There to Heat Pumps? The government are currently pushing heat pumps hard in their frantic quest to achieve Net Zero. For a range of reasons, however, they are not suitable for every property. And even if your home might theoretically be suitable, there are good reasons you might not want one (discussed a while ago in this Mouthy Money article). So in this post I set out some possible alternatives you might like to consider instead.
Next, a few odds and ends. I recently invested some money (just over £1,000) in a Scottish wind farm project via a platform called Ripple Energy. The way this works is that you pay a one-off fee towards building the wind farm, and in exchange receive lower-cost, ‘green’ electricity once the wind farm is up and running. This will continue for the life of the wind farm (an estimated 20 years). The original closing date for this was the end of May, but the date was extended and the share offer is still open at the time of writing.
If you’re interested in learning more, you can visit the Ripple website via my referral link. If you decide to invest, you will get a £25 bonus credited to your account when generation starts (and so will I). Note that you will need to invest a minimum of £1,000 to qualify for the £25 bonus, but you can invest from as little as £25 if you like.
Speaking of energy, a quick reminder that if you switch to EDF via my refer-a-friend link (below) you can get a FREE £50 credited to your energy account (and so will I). For more info and to sign up, click on https://edfenergy.com/quote/refer-a-friend/sunny-koala-9462
Finally, I wanted to highlight the decision by the new Labour government to abolish Winter Fuel Payments for all pensioners except those on pension credit. Like many others, I feel this is a terrible decision that will badly impact some of the poorest people in society and quite likely lead to increased deaths by hypothermia in the winter ahead (and others to follow).
it is therefore more important than ever that older people who may be eligible for pension credit apply for it. I recently updated my blog post about pension credit in light of the announcement. If you have older relatives, friends or neighbours, please encourage them to apply if they may be eligible. The application process is not as straightforward as it should be, so they may well appreciate some help with it
Even so, be aware that only the very poorest pensioners qualify for pension credit. If you have any source of income apart from the state pension, even a tiny one, the chances are you won’t be eligible. I do therefore recommend writing to your MP and asking for this Draconian decision to be reversed. You may also like to sign one of the various petitions that have sprung up, including this one on Change.org and this one from Age UK. The latter is up to almost half a million signatures now.
That’s all for now. If you have any comments or queries about this update, as ever, feel free to leave them below. I am always delighted to hear from PAS readers
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss. Note also that posts on PAS may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!
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Yes, it’ s time for another exciting giveaway here on Pounds and Sense. This one has a ‘back to school’ theme. In most parts of the UK, of course, this occurs in early September. Scottish schools generally return a bit earlier, around mid-August.
Again I have clubbed together with some of my fellow UK bloggers to provide a plethora of great prizes. And the best news is, it’s entirely free to enter. The giveaway is open now and will close on September 1st 2024.
The prizes have been hand-picked for children and young people returning to school this autumn, so they should be ideal for your children or grandchildren. But if you want to keep any for yourself, we promise we won’t tell!
This event has (again) been organized by Rowena Becker, who blogs at My Balancing Act. No small amount of effort has been involved in arranging and co-ordinating it, so many thanks again to Rowena for her hard work and dedication.
Without further ado, then, I’ll hand you over to Rowena to introduce the giveaway…
Back to School Giveaway
Get ready for an exciting opportunity as some of the top UK bloggers unite to bring you a fantastic back-to-school giveaway! We’ve teamed up to offer one lucky winner a fabulous collection of school essentials that will make heading back to the classroom a breeze.
From stylish lunch bags and durable water bottles, to school shoes and jackets, this giveaway promises to equip you with some great goodies to kick off the school year in style. Join us in this collaborative celebration and enter for your chance to win these amazing prizes. Let’s make this school year the best one yet!
In order to be able to bring you this incredible giveaway, some of the UK’s top bloggers got together. A massive thank you to all involved! The bloggers taking part are:
Start-Rite Shoes is giving one lucky winner the chance to win a pair of school shoes for their child.
The foundation of any school uniform is a quality fitted pair of shoes, but there is nothing uniform about a Start-Rite school shoe! With 12 new styles added to their school shoe collection this season, Start-Rite is more prepared than ever to protect your children’s feet. No one size fits all, as every pair of feet has individual requirements to ensure healthy physical development.
Whether you’re looking to support wide or narrow feet, a high instep, or shoes that double for a special occasion, Start-Rite has a style to suit every child.
EcoSplash Fleece Lined Jacket Navy from Muddy Puddles
Gear up for the ultimate back-to-school season with Muddy Puddles’ in our back-to-school giveaway! Included in the prize bundle is a top-tierkids waterproof jacket that ensures your young adventurers are ready for any weather.
This navy raincoat features an impressive waterproof rating of 10,000mm to keep your child dry during heavy downpours, perfect for rainy days. Crafted from durable, breathable fabric made from recycled plastic bottles, it’s both eco-friendly and long-lasting. The soft fleece lining provides extra warmth, while the jacket’s design makes it easy to layer across various seasons. Fully taped seams offer robust protection against the elements, and reflective details enhance visibility in low-light conditions for added safety. Plus, it’s machine washable at 30 degrees for easy care.
Muddy Puddles has your kids covered for back to school with theirback to school jackets, waterproofs, and more—ensuring every rainy walk to school, puddle-jumping session, and chilly playground adventure is tackled in style and comfort!
Smash lunch bag and water bottle set
Gear up for the school year with an essential lunch bag and water bottle set! TheSmash Lunch Bag is your kids perfect lunchtime companion, designed with full insulation and an antibacterial lining to ensure their meals are as fresh as possible. Made from premium neoprene, this lunch bag is not only fully washable but also brings a splash of personality and fun to every meal.
Stay hydrated in style with theSmash Twin Wall Soda Bottle. Made from durable stainless steel, this sustainable bottle features a sleek design and a removable cap, making it an ideal everyday accessory. It’s BPA-free, food-safe, non-toxic, and offers a smart, twin-walled construction.
Create-a-Space™ Storage Centre from Learning Resources
Introducing a stylish addition to any back-to-school setup: the Create-a-Space™ Storage Centre from Learning Resources, which is part of our exclusive giveaway prize bundle! Perfectly blending modern design with practicality, this white 10-piece set will seamlessly fit into any décor theme, whether at home or in the classroom.
The carousel-style design features 8 removable containers, providing the perfect solution for organising essentials like glue sticks, crayons, pens and more. Keep your workstation clutter-free and enjoy a space that is as functional as it is chic with this versatile storage centre.
LittleLife Flip-Top Water Bottle!
Family active outdoors brand, LittleLife, is giving one person their choice of aflip-top water bottle, perfect for the school day.
Made from impact-resistant Tritan copolyester, a watertight lid and holding 550ml, these bottles are durable and fit fuss-free into your child’s school rucksack or backpack. LittleLife’s water bottles also come with a chew-resistant straw to avoid lingering tastes and odours due to being BPA-free.
Brainstorm Toys Children’s 14cm Desktop World Globe
Discover new horizons with the Brainstorm Toys Children’s 14cm Desktop World Globe, a shining star in our back-to-school giveaway prize bundle! This compact yet high-quality globe is a treasure trove of knowledge, showcasing detailed political boundaries, natural wonders like lakes, rivers, and deserts, as well as capitals and major cities.
Perfect for curious minds, this globe is ideal for home or school, making it a must-have for any aspiring explorer. The sturdy base ensures stability, while its easy rotation allows young adventurers to seamlessly explore different areas of the world. Enhance your child’s learning experience and ignite curiosity with this engaging educational tool.
Little Brian Scribble Paint Sticks
Unleash your creativity withScribble Paint Sticks by Little Brian, a standout addition to our giveaway prize bundle! These innovative paint sticks are perfect for adding intricate details and patterns to your artwork, thanks to their finer tip. Featuring 12 vibrant classic colours, they bring your child’s artistic visions to life with ease. Enjoy a mess-free painting experience where paint twists up and down just like a glue stick and dries in under 60 seconds. Whether you’re working on paper, card, wood, or glass, these versatile paint sticks make it simple to explore your creativity without the clean-up hassle.
How to Enter
You can enter this Back to School Giveaway by completing as many Rafflecopter widget entry options below as you like. All entries will be collated, and one winner will be randomly chosen via Rafflecopter.
The giveaway will run from 4 pm 23rd August 2024 to 8 pm 1st September 2024.
The winner will be notified by email from rowena@mybalancingact.co.uk
The winner will have 7 days to respond, after which time we reserve the right to select an alternative winner.
This prize draw is in no way sponsored, endorsed or administered by, or associated with, Facebook, Instagram, X, YouTube, BlogLovin or Pinterest or any other social media platform.
Prizes open to over 18s only. Age verification may be required to receive some prizes.
Some or all of the prizes may take a few weeks to arrive.
If any prizes are out of stock then we will do our best to find a suitable replacement but cannot guarantee it.
Anyone who unfollows before the giveaway ends or doesn’t complete the required entry action will be disqualified.
The prize is non-transferable, non-refundable and cannot be exchanged for monetary value.
We may be using a parcel service or Royal Mail for some of the prizes and their standard compensation will apply in the event of loss or damage.
Some items may be sent directly by the supplier and we do not have responsibility if these go missing and we cannot replace such items.
In the unlikely event that one of the companies withdraws a prize, we cannot offer an alternative.
The winner’s name will be stated on some or all of our bloggers’ websites and announced on Twitter/X and other social media channels. It will also be displayed on the Rafflecopter entry form. By entering this prize draw, you give your permission for this.
Please note the winner may have the same name as you so if you see your name displayed, be aware that you are not the winner unless you have been notified by us.
There may be some delays in receiving prizes.
Good luck, and I hope a Pounds and Sense reader wins this fabulous prize bundle!
Note: This post (and others on Pounds and Sense) includes affiliate links. If you click through and make a purchase or perform some other specified action, I may receive a commission for introducing you. This will have no effect on the product or service you receive or the price you pay for it, but it does help me pay my bills. Thank you!
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The first budget under new Labour Chancellor Rachel Reeves is scheduled for Wednesday 30 October 2024.
Speculation is rife about potential tax rises aimed at addressing the country’s economic challenges. But while tax increases appear inevitable, there is still time to take proactive steps to minimize their impact on your finances.
Here are some tips for how to prepare for and reduce the burden of potential tax hikes.
1. Maximize Tax-Efficient Savings and Investments
One of the most effective ways to protect yourself from higher taxes is by taking full advantage of tax-efficient savings and investment vehicles. These include:
ISA Allowances: The annual ISA (Individual Savings Account) allowance is currently £20,000. Money saved in an ISA grows tax-free, meaning you won’t pay any income tax, dividend tax or capital gains tax (CGT) on any profits made. As well as Cash ISAs, you can invest in Stocks and Shares ISAs and Innovative Finance ISAs (IFISAs).
Personal Savings Allowance (PSA): Basic rate taxpayers can earn up to £1,000 in savings interest tax-free. Higher rate taxpayers get a reduced allowance of £500.
Starting Rate for Savings: For those with a low overall income, the starting rate for savings can be especially beneficial. If your total income (excluding savings interest) is less than £17,570, you may qualify for the starting rate for savings, which can provide up to an additional £5,000 in tax-free interest. This is discussed in more detail in my recent post How to Maximize Your Tax-Free Savings Interest.
Venture Capital Schemes: For those willing to take more risk, schemes like the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) offer significant tax reliefs, including income tax relief and capital gains tax exemption on profits.
2. Diversify Your Investments
Diversification remains a cornerstone of sound investment strategy, especially in times of political and economic uncertainty. By spreading your investments across different asset classes – such as equities, bonds and property – you can reduce the risk of any single investment adversely affecting your portfolio. Consider international diversification as well to hedge against possible downturns in the UK economy.
3. Consider Using a ‘Bed and ISA’ Strategy
If you hold a lot of investments outside an ISA or other tax shelter, this can be a good strategy to reduce your tax liability.
Bed-and-ISA involves selling taxable stocks and shares and then repurchasing them within an ISA wrapper. This allows you to transfer investments into a tax-protected environment, where future gains and income will be sheltered from tax. Note that you cannot transfer taxable stocks and shares directly into an ISA, but Bed-and-ISA performs the same function.
On the minus side, Bed-and-ISA may incur some costs in terms of transaction fees and any difference (spread) between selling and buying prices. You may also become liable for CGT if any profits realized exceed your annual tax-free allowance. The long-term benefits can be substantial, however. This applies especially if – as seems likely – tax-free CGT allowances are reduced and the rates payable are increased. Of course, the Conservatives started doing this when they were in power.
4. Rebalance Your Portfolio Towards Tax-Efficient Assets
Different types of investments are subject to different levels of tax. It’s important to rebalance your portfolio to favour assets that could be less impacted by tax hikes.
Dividends: The tax-free dividend allowance for 2024/25 is £500, and anything above this is taxed at rates of 8.75% (basic rate taxpayers), 33.75% (higher rate), and 39.35% (additional rate). If dividend tax rises further, you may want to limit investments in dividend-paying stocks outside of tax-free wrappers like ISAs and pensions (see above).
Capital Gains: The capital gains tax (CGT) allowance has dropped to £3,000 for the 2024/25 tax year, and there are fears it could be cut further. Consider selling assets to crystallize gains while you can still use your allowance, or shift investments into tax-free vehicles like ISAs using the ‘Bed and ISA’ (or ‘Bed and Pension’) strategy discussed above..You can also offset capital gains with capital losses. If you have investments that have performed poorly, selling them to realize a loss can help offset gains elsewhere in your portfolio. Remember that CGT only applies when a profit (or loss) is actually realised.
Bonds: Government and corporate bonds are often seen as lower-risk investments and may be less vulnerable to tax increases than equity income streams. You might want to consider including more bonds in your portfolio.
Commodities: Gold and other commodities have traditionally been seen as a safe haven in times of economic upheaval. There are risks, however, and it’s important to do your own ‘due diligence’ and seek professional advice before going down this route.
5. Use Your Pension Allowance
Pensions are one of the most tax-efficient ways to save for the future. Contributions receive tax relief at your marginal income tax rate, which means for every £100 you contribute, the government effectively adds £20 for basic-rate taxpayers, £40 for higher-rate taxpayers, and £45 for additional-rate taxpayers.
Consider increasing your pension contributions to mitigate the impact of other tax rises. Just be sure to keep within the current £60,000 annual pension contribution limit. Note that for those earning over £260,000 (adjusted income), the tax-free allowance tapers. More info about this can be found on the government website.
If you’re self-employed, consider setting up or increasing contributions to a private pension or Self-Invested Personal Pension (SIPP) to take full advantage of these benefits.
6. Plan for Inheritance Tax (IHT) Rises
Inheritance tax has long been a controversial topic, and it may well increase under the new government. Currently, the IHT threshold is £325,000, with an additional £175,000 allowance if you’re passing your main home to direct descendants. Anything above this is currently taxed at 40%.
To mitigate IHT risks:
Consider making gifts: You can give away up to £3,000 per year tax-free, with additional allowances for wedding gifts and gifts from surplus income. Gifts between spouses are normally exempt from CGT or IHT, allowing you to transfer assets and take advantage of both partners’ allowances.
Set up a trust: Placing assets in a trust may help reduce IHT liabilities.
Life insurance policies: Some people take out policies specifically designed to cover future IHT bills. Always seek professional advice, however, as trusts and insurance policies can be complex.
7. Review Your Income Structure
Reeves may target income tax thresholds and reliefs, particularly for higher earners. Reviewing how your income is structured could help mitigate the impact.
Salary Sacrifice Schemes: Consider participating in salary sacrifice schemes, where you give up part of your salary in exchange for benefits like pension contributions, childcare vouchers, or cycle-to-work schemes. This will reduce your taxable income.
Dividend Income: If you run a business or own shares, taking income as dividends can be more tax-efficient than a salary, particularly if the dividend tax rates remain lower than income tax rates. Any good accountant will be able to advise you.
Spousal Income Splitting: If your spouse is in a lower tax bracket, transferring income-generating assets to them can reduce your overall tax burden. This is particularly useful for rental income or dividends from jointly held investments.
8. Prepare for Property Tax Changes
Property taxes, including stamp duty and council tax, could see reforms or increases. Here’s how to plan.
Bring Forward Property Transactions: If you’re considering buying (or selling) property, it may be wise to do so before any potential stamp duty increases are announced. Locking in current rates could save you significant costs.
Consider Downsizing: If you anticipate increased council tax rates or other property-related taxes, downsizing to a smaller home could reduce your future tax liabilities and lower your overall living costs. And, of course, doing this should release some of the equity in your property, which you can then use to help maintain your standard of living.
9. Enhance Charitable Giving
If Reeves increases income tax or reduces the thresholds for higher tax rates, charitable giving can become a more attractive option.
Gift Aid: Donations made under Gift Aid are tax-efficient, as charities can claim an additional 25% from the government. Higher-rate taxpayers can claim back the difference between the basic rate and higher rate of tax on their donations.
Donor-Advised Funds: These funds allow you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time. It’s a strategic way to manage charitable giving while benefiting from tax relief.
10. Stay Informed and Seek Professional Advice
Tax planning can be complex, especially in an uncertain economic environment. Staying informed about potential changes in the budget and seeking professional financial advice can help you adapt your strategy to minimize your tax liabilities effectively.
Monitor Budget Announcements: Keep an eye on the budget and any subsequent economic statements to understand how proposed changes might affect you. Quick responses can sometimes yield significant tax savings.
Consult a Financial Adviser: A qualified financial adviser can help tailor a tax-efficient strategy to your individual circumstances, taking into account your income, assets, and long-term financial goals.
Closing Thoughts
While tax rises in Rachel Reeves’ first budget may be inevitable, UK residents have various strategies at their disposal to mitigate the impact.
By taking advantage of tax-efficient investments, restructuring income and staying informed, you can protect your wealth and ensure that any tax increases have a minimal effect on your financial well-being. As always, professional advice tailored to your specific situation is invaluable in navigating these changes effectively.
If you have any comments or questions about this post, please do leave them below. But bear in mind that I am not a qualified tax adviser and cannot provide personal financial advice. All investing carries a risk of loss.
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I’ll begin as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).
As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £24,237 (rounded up). Last month it stood at £24,250, so that is a small decrease of £13.
Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,895 compared with £3,911 a month ago, a fall of £16. Here is a screen capture showing performance over the year to date.
Finally, at the start of December 2023 I invested £500 in one of Nutmeg’s new thematic portfolios (Resource Transformation). In March I also invested a further £200 from ‘Refer a Friend’ bonuses. As you can see from the all-time screen capture below, this portfolio is now worth £769 compared with £772 last month, a small decrease of £3.
As you can see from the charts, July was an up-and-down month for my Nutmeg investments. Their overall value has fallen by a modest £32 or 0.11% since the start of July.
Although any fall is disappointing, short-term ups and downs are very much very much to be expected with stock market investments. And it is worth observing that the overall value of my Nutmeg investments is still up by £2,586 or 9.82% since the start of the year.
You can read my full Nutmeg review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last eight years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs), Lifetime ISAs and Junior ISAs as well.
You may like to note that I am no longer an affiliate for Nutmeg. That means you won’t find any affiliate links in my review (or anywhere else on PAS). And you will no longer see the no-fees-for-six-months offer I used to promote as an affiliate. However, the better news is that you can still get six months free of any management fees by registering with Nutmeg via my Refer a Friend link. I will receive a gift voucher if you do this, which is duly appreciated
Don’t forget, also, that the new tax year began on 6 April 2024 and and you have a whole new £20,000 tax-free ISA allowance for 2024/25. In a change to the rules, you can now open any number of ISAs with different providers in the same tax year, as long as you don’t exceed your overall £20,000 allowance. So opening a stocks and shares ISA with Nutmeg won’t prevent you from also opening one with another S&S ISA provider (should you so wish) later in the financial year.
Moving on, I also have investments with the property crowdlending platform Kuflink. They continue to do well, with new projects launching every week. I currently have around £833 invested with them in 7 different projects paying interest rates averaging around 7%. Last month I withdrew £500 from completed loans and now have £40 remaining in my Kuflink cash account.
To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.
There is now an initial minimum investment of £1,000 and a minimum investment per project of £500. Kuflink say they are doing this to streamline their operation and minimize costs. I can understand that, though it does mean that the option to test the water with a small first investment has been removed. It also makes it harder for small investors (like myself) to build a well-diversified portfolio on a limited budget.
One possible way around this is to invest using Kuflink’s Auto/IFISA facility. Your money here is automatically invested across a basket of loans over a period from one to five years. Interest rates range from 7% to around 10%, depending on the length of term you choose. Full up-to-date details can be found on the Kuflink website.
You can invest tax-free in a Kuflink Auto IFISA. Or if you have already used your annual ISA allowance elsewhere, you can invest via a taxable Auto account. You can read my full Kuflink review here if you wish.
Moving on, my Assetz Exchange investments continue to generate steady returns. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.
Since I opened my account, my AE portfolio has generated a respectable £195.87 in revenue from rental income. As I said in last month’s update, capital growth has slowed, though, in line with UK property values generally.
At the time of writing, 13 of ‘my’ properties are showing gains, 5 are breaking even, and the remaining 15 are showing losses. My portfolio is currently showing a net decrease in value of £28.74, meaning that overall (rental income minus capital value decrease) I am up by £167.13. That’s still a decent return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.
The overall fall in capital value of my AE investments is obviously a little disappointing. But it’s important to remember that until/unless I choose to sell the investments in question, it is largely theoretical, based on the most recent price at which shares in the property concerned have changed hands. The rental income, on the other hand, is real money (which in my case I’ve reinvested in other AE projects to further diversify my portfolio).
To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned (especially after Kuflink raised their minimum investment per project to £500). You can actually invest from as little as 80p per property if you really want to proceed cautiously.
As I noted in this recent post, Assetz Exchange is particularly good if you want to compound your returns by reinvesting rental income. This effectively boosts the interest rate you are receiving. Personally, once I have accrued a minimum of £10 in rental payments, I reinvest this money in either a new AE project or one I have already invested in (thus increasing my holding). Over time, even if I don’t invest any more capital, this will ensure my investment with AE grows at an accelerating rate and becomes more diversified as well.
My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate]. Note that as from this financial year (2024/25), you can open more than one IFISA per year.
In 2022 I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).
In January 2023 I added to this with another $500 investment in one of their thematic portfolios, Oil Worldwide. I also invested a small amount I had left over in Tesla shares.
As you can see from the screen captures below, my original investment totalling $1,022.26 is today worth $1,303.60 an overall increase of $281.34 or 27.52%.
As you can see, my Oil WorldWide investment is showing just over 12% profit. That’s okay but not spectacular. Obviously my copy trading investment with Aukie2008 has been doing better. The Oil WorldWide port was recently rebalanced by eToro, so I hope this may boost its performance. The investment team at eToro periodically rebalance all smart portfolios to ensure that the mix of investments remains aligned with the portfolio’s goals, and to take advantage of any new opportunities that may present themselves.
eToro also offer the free eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here. Note that it can also serve as a cryptocurrency wallet, allowing you to send and receive crypto from any other wallet address in the world.
I had two more articles published in June on the excellent Mouthy Money website. The first is Seven Ways to Make Money From Your Garden. In this article I set out seven ways you can make money from your garden (if you’re lucky enough to have one). None of these is likely to make you a fortune, but they can all help your finances stretch further in these challenging times.
Also in July I revealed how you can Make a Sideline Income Renting Out Your Driveway. If you have a parking space or driveway that sits empty most of the day, turning it into a source of passive income is easier than you might think. In this article I explained how you can get started and make the most from this opportunity.
As I’ve said before, Mouthy Money is a great resource for anyone interested in money-making and money-saving. From the wide range of articles published in July, I particularly enjoyed Five Ways Tracking Your Spending Can Improve Your Finances by regular MM contributor Shoestring Jane. Jane writes mainly about money saving and frugal living, and this article is a good example of her work. You can see all of Jane’s articles for Mouthy Money via this web page.
I also published several posts on Pounds and Sense in June. Some are no longer relevant due to closing dates having passed, but I have listed the others below.
How to Protect Your Savings and Investments Under a Labour Government was originally written and published before the general election. I revised and updated it after Labour’s widely anticipated victory, but the advice remains largely the same. A significant part of this involves making the most of tax-free opportunities such as ISAs and (to an extent) pensions, but various other methods and strategies are suggested as well. Nothing that has happened since Labour came into power has suggested to me that the advice in the article needs changing.
Also in July I published Ten Tax-Free Ways to Boost Your Finances. As you may have heard, UK citizens currently bear the highest tax burden since WW2. And with the new government looking to raise more money to pay for its ambitious spending plans, there is no sign of that changing any time soon. So in this article I set out some ways you may be able to boost your finances without increasing your tax liability. As you’ll see, doing this needn’t involve complicated investment strategies or seeking ‘loopholes’ in tax law. The article sets out ten perfectly legal ways you can boost your finances without having to worry about the taxman.
Next, a few odds and ends. I recently invested some money (just over £1,000) in a Scottish wind farm project via a platform called Ripple Energy. The way this works is that you pay a one-off fee towards building the wind farm, and in exchange receive lower-cost, ‘green’ electricity once the wind farm is up and running. This will continue for the life of the wind farm (an estimated 20 years). The original closing date for this was the end of May, but the date was extended and the share offer is still open at the time of writing.
If you’re interested in learning more, you can visit the Ripple website via my referral link. If you then decide to invest yourself, you will get a £25 bonus credited to your account when generation starts (and so will I). Note that you will need to invest a minimum of £1,000 to qualify for the £25 bonus, but you can invest from as little as £25 if you like.
Speaking of energy, a quick reminder that if you switch to EDF via my refer-a-friend link (below) you can get a FREE £50 credited to your energy account (and so will I). For more info and to sign up, click on https://edfenergy.com/quote/refer-a-friend/sunny-koala-9462
Finally, I wanted to highlight the decision by the new government to abolish Winter Fuel Payments for all pensioners except those on pension credit. Like many others, I feel this is a terrible decision that will badly impact some of the poorest people in society and quite likely lead to increased deaths by hypothermia in the winter ahead (and others to follow).
it is therefore more important than ever that older people who may be eligible for pension credit apply for it. I recently updated my blog post about pension credit in light of the announcement. If you have older relatives, friends or neighbours, please encourage them to apply if they may be eligible. The application process is not as straightforward as it should be, so they may well appreciate some help with it 🙏
Even so, be aware that only the very poorest pensioners qualify for pension credit. If you get the full state pension and/or a private pension (even just a tiny one) the chances are you won’t be eligible. I do therefore recommend writing to your MP and asking for this Draconian decision to be rescinded. You may also like to sign one of the various petitions that have sprung up, including this one on Change.org and this one from Age UK.
Sorry to end on a downbeat note. At least in this cold, damp, depressing summer we are currently enjoying a few days of warm sunshine, so I hope you have been able to get out and make the most of it. I am sure normal service will be resumed soon!
As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss. Note also that posts on PAS may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!
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As you may have heard, UK citizens are currently bearing the highest tax burden since WW2.
And with the new government looking to raise more money to pay for its ambitious spending plans, there is no sign of that changing any time soon. So today I thought I’d set out some ways you may be able to boost your finances without increasing your tax liability.
As you’ll see, doing this needn’t involve complicated investment strategies or seeking ‘loopholes’ in tax legislation. There are numerous perfectly legal ways to boost your finances without worrying about the taxman. Here are ten methods to consider…
1. Maximize Your ISA Contributions
Individual Savings Accounts (ISAs) offer a fantastic way to save money tax-free. The annual ISA allowance for 2024/25 is (still) £20,000. Whether you choose a Cash ISA, a Stocks and Shares ISA, an Innovative Finance ISA (IFISA), or a combination of all three, any returns you make are entirely tax-free. This makes ISAs a straightforward and effective way to boost your savings.
2. Utilize Your Personal Savings Allowance
For basic-rate taxpayers, the first £1,000 of interest on savings is tax-free each year. Higher-rate taxpayers can earn up to £500 in interest before paying tax. This means you can keep more of the interest you earn from your savings accounts, helping your money grow more quickly.
3. Invest in Premium Bonds
Premium Bonds, offered by National Savings & Investments (NS&I), provide a unique way to save money tax-free. Instead of earning interest, your bonds enter a monthly prize draw for cash prizes. Any winnings are tax-free.
Premium bonds are guaranteed by the UK government and you can get your money back at any time. Obviously there are never any guarantees how much you will win (or if you will win at all) so it’s strongly advised that you have other savings and investments as well.
4. Try Matched Betting
Matched betting is a method used to exploit free bet promotions offered by bookmakers. When done correctly it’s risk-free and the earnings are tax-free in the UK. Matched betting involves placing bets on all possible outcomes of an event using free bets to ensure a profit regardless of the result. While it requires careful attention to detail, it can be an effective way to boost your finances. Just be aware that the longer you do it, the more difficult it may become to find suitable opportunities. But if you need a short-term, tax-free income boost, matched betting can certainly fit the bill.
If you’re married or in a civil partnership and one of you earns less than the personal allowance (£12,570 in 2024/25), you could transfer £1,260 of your allowance to your partner, reducing their tax bill by up to £252 a year. This one simple step can provide a meaningful boost to your household finances.
6. Earn Up To £1,000 Tax-free
If you have a hobby or skill, consider monetizing it. The UK government allows you to earn up to £1,000 (gross) tax-free each year from trading or property income under the Trading and Property Allowance. This could include doing odd jobs, selling handmade crafts, offering tutoring services, or renting out a spare room occasionally. As long as you keep under the £1,000 annual limit, you don’t have to pay tax on this money or even tell the taxman about it.
7. Utilize Cashback and Rewards Cards
Cashback and rewards credit cards can provide a significant boost to your finances if used wisely. By earning points or cashback on everyday purchases, you can effectively reduce your outgoings. Just remember to pay off any balance in full each month to avoid interest charges. Cashback cards and apps (e.g. Jam Doughnut) are tax-free, as HMRC regard them as simply returning your own money to you.
8. Rent a Room Scheme
Under the Rent a Room Scheme, you can earn up to £7,500 per year (gross) tax-free by renting out a furnished room in your home. This is a great way to utilise extra space and generate additional income without incurring any tax liability.
9. Switch and Save
Regularly switching your utility providers, insurance, bank account and other services can save you hundreds of pounds each year. Comparison websites such as Compare the Market make it easy to find the best deals, and many offer incentives for switching. These savings are effectively tax-free boosts to your disposable income. And switching bonuses (as offered by some banks) are tax-free, as HMRC regard them as a form of cashback.
10. Sell Stuff You No Longer Need on eBay
Selling items you no longer need or use on platforms like eBay can provide a significant financial boost. The taxman allows individuals to sell personal items without paying tax on the proceeds provided it’s not done as a business. This decluttering process can turn unused possessions into tax-free cash.
Just be aware that if you buy things with the intention of reselling them, that would be seen as trading and there could be tax to pay. Also, if you sell a product for more than you originally paid for it, you could be liable for capital gains tax (CGT) if the profit made exceeds your annual CGT tax-free allowance.
Closing Thoughts
So there you are – ten ways you can boost your finances without incurring any extra tax liability. Of course, there is no guarantee that the government won’t change the law on some of these, so I will update this article if that happens. For the time being, though, I urge you to take advantage of as many of these opportunities as you can. In the current cost of living crisis, we all need to hang on to as much of our hard-earned money as possible!
As always, if you have any comments or questions about this article – or other tax-free opportunities that you think should have been covered as well – please do leave them below.
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss. Note also that posts on PAS may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!
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A quickie today to let you know that the annual Amazon Prime Day is almost with us. It extends over two days, Tuesday 16th and Wednesday 17th July 2024.
Prime Day is a special event for Amazon Prime members only. During it Amazon offers Prime members extra savings and special offers across a wide range of TVs, smart home products, kitchen equipment, grocery, toys, fashion, furniture, everyday essentials, and more.
Some of the best deals are typically reserved for Amazon’s own products, such as their Kindle e-book readers, Amazon Echo smart speakers and Ring video doorbells and security cameras. Discounts are often in the region of 40-50 percent for these products. If you’re thinking of buying any of them, Prime Day is definitely the day – or two days – to do it.
I have been a member of Amazon Prime for almost ten years now. As a regular Amazon shopper, I find it well worth while for the free one-day delivery on millions of items alone. But as a Prime member you get access to a host of other benefits and services as well, including Amazon Prime Music and Amazon Prime Video.
If you’re thinking of joining Amazon Prime, therefore, I highly recommend doing it in the next day or two, so you can benefit from the Prime Day offers. Personally I think it’s worth it for the free delivery alone, let alone everything else that’s on offer. But if you wish, you can get a 30-day free trial now, take advantage of the Prime Day offers, and then cancel without owing any money. It’s your choice!
You can also see all the latest Prime Day deals by clicking here. This page also lists early deals before Prime Day itself.
As always, if you have any comments or questions about Amazon Prime or Prime Day, please do post them below.
Disclosure: This post includes affiliate links. If you click through and make a purchase, I may receive a commission for introducing you. This will not affect the price you pay or the products or services you receive.
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For better or worse, the UK has elected a Labour government. There will undoubtedly be many changes in economic policy, taxation and regulation, which of course will affect personal finances. So today I am setting out some ways in which you may be able to safeguard your savings and investments as Labour take control.
As Pounds and Sense is aimed especially at older readers, I am obviously writing from that perspective, but many of these points will apply equally to younger people as well.
1. Diversify Your Investments
Diversification remains a cornerstone of sound investment strategy, especially in times of political uncertainty. By spreading your investments across different asset classes – such as equities, bonds and property – you can reduce the risk of any single investment adversely affecting your portfolio. Consider international diversification to hedge against domestic political risks. This means investing in global markets to mitigate potential local economic disruptions. Historically, gold and commodities can also act as a hedge against economic upheavals.
2. Understand Tax Implications
Labour governments typically lean towards higher taxes on wealth and income to fund public services. Stay informed about potential changes in tax policies, such as higher rates of capital gains tax, dividend tax or inheritance tax. To mitigate the impact:
Utilize ISAs and Pensions – make full use of tax-efficient accounts like Individual Savings Accounts (ISAs) and pensions, which can shield your investments from tax.
Consider Timing of Asset Sales – if changes in capital gains tax (CGT) are anticipated, you might want to accelerate the sale of certain assets before new rates take effect.
Inheritance Planning – review your estate plans and consider trusts or gifts to mitigate higher inheritance taxes.
3. Consider a Bed-and-ISA Strategy
If you hold a lot of investments outside an ISA or other tax shelter, this can be a good strategy to reduce your tax liability.
Bed-and-ISA involves selling taxable stocks and shares and then repurchasing them within an ISA wrapper. This allows you to transfer investments into a tax-protected environment, where future gains and income will be sheltered from tax. Note that you cannot transfer taxable stocks and shares directly into an ISA, but Bed-and-ISA performs the same function.
On the minus side, Bed-and-ISA may incur some costs in terms of transaction fees and any difference (spread) between selling and buying prices. You may also become liable for CGT if any profits realized exceed your annual tax-free allowance. The long-term benefits can be substantial, however. This applies especially if – as seems likely under Labour – tax-free CGT allowances are reduced and the rates payable are increased. Of course, the Conservatives have started doing this already.
Some Online Platforms Will Undertake Bed-and-ISA on Your Behalf – that means you don’t have to do the share selling and buying yourself. One such platform is AJ Bell. This can obviously save you a bit of time and may work out cheaper as well. Be aware that you will still have to pay some fees and charges, however, along with CGT on any capital gains above your personal allowance.
A Similar Option is Bed-and-SIPP – with this you sell taxable stocks and shares and then buy the same ones back within your private pension (SIPP).
This Strategy is Named After an Older One Called Bed-and-Breakfasting – at one time this was deployed to minimize CGT liability. The law was changed to make bed-and-breakfasting less effective, but Bed-and-ISA can still work well.
Bed-and-ISA Can Also Be Used to Crystallize a Loss – this can then be set against other taxable profits in the year concerned to reduce your CGT liability.
Property has long been a favoured investment in the UK. However, the Labour government may introduce policies adversely affecting buy-to-let investors, such as rent controls or higher taxes on second properties. To protect your property investments:
Assess Rental Yields and Potential Regulations – ensure your rental income can withstand potential regulatory changes.
Consider Property Ownership Structures – holding property through a limited company can sometimes be more tax-efficient.
Stay Liquid – keep some liquidity to manage any unforeseen expenses or changes in regulation.
5. Focus on Stable Income Investments
Investments that provide steady income can be particularly valuable during uncertain times. Consider:
Dividend-Paying Stocks – companies with a history of stable dividends can provide a reliable income stream.
Bonds and Fixed Income – government and high-quality corporate bonds can offer stability and predictability.
Infrastructure Funds – these often provide regular income and are less sensitive to economic cycles.
6. Monitor Inflation and Interest Rates
Economic policies under Labour may lead to changes in inflation and interest rates. Historically, increased government spending can drive inflation, which in turn erodes the value of savings. And if inflation rises, the Bank of England is very likely to respond by raising interest rates. To combat this:
Consider Inflation-Linked Investments – investments that adjust with inflation, such as inflation-linked bonds.
Review Savings Accounts – ensure your savings accounts offer competitive interest rates. A cash ISA will also shelter your savings from tax.
Consider Fixed-Rate Mortgage Deals – if interest rates rise under Labour, a fixed-rate deal on your mortgage will offer some protection.
Take Action on Equity Release – if you’ve been considering this, there is a case for proceeding sooner rather than later, in case long-term interest rates rise
7. Stay Informed and Flexible
The political landscape can change rapidly. Regularly review your investment portfolio and financial plans to ensure they align with current and anticipated economic policies. Consider consulting with a financial advisor who can provide tailored advice based on the latest developments. Depending on your circumstances, you may want to consult with an accountant as well.
8. Invest in Knowledge and Skills
An often-overlooked investment is in your own knowledge and skills. By staying informed about personal finance and economic policies, you can make better decisions. Attend financial planning seminars, read reputable financial news, and consider taking financial education courses. There are also some excellent personal finance websites, including Money Saving Expert, Which? Money and This Is Money. I recommend reading and following all of them.
And naturally you should keep reading Pounds and Sense as well. Why not take a moment to subscribe in the right-hand column so as never to miss any of my posts in future? ➡➡➡
Closing Thoughts
While the Labour government may introduce changes that impact savings and investments, proactive planning and informed decision-making can help protect your financial future.
By diversifying your portfolio, making good use of tax-efficient investments such as ISAs and pensions, focusing on stable income investments, and staying adaptable, you can navigate the uncertainties and safeguard your assets. Remember, the best defence is a well-thought-out strategy and staying informed about the changing economic landscape. Good luck, and I wish you every success in achieving your financial goals.
As always, if you have any comments or questions about this post, please do leave them below.
Disclaimer: I am not a qualified financial adviser and nothing in this post should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing, and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.
This is an updated version of my original article.
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Here is my latest monthly update about my investments. Note that this month due to other commitments I am publishing this post a few days early. You can read my June 2024 Investments Update here if you like.
I’ll begin as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).
As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £24,250. Last month it stood at £23,744, so that is an increase of £506.
Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,911 compared with £3,808 a month ago, a rise of £103. Here is a screen capture showing performance over the year to date.
Finally, at the start of December 2023 I invested £500 in one of Nutmeg’s new thematic portfolios (Resource Transformation). In March I also invested a further £200 from ‘Refer a Friend’ bonuses. As you can see from the screen capture below, this portfolio is now worth £772 compared with £766 last month, a small rise of £6.
As you can see from the charts, June was generally a decent month for my Nutmeg investments. Their overall value has risen by £615 or 2.18% since the start of June. They are also up by £2,618 or 9.95% in the six months since the start of the year.
You can read my full Nutmeg review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last eight years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs), Lifetime ISAs and Junior ISAs as well.
You may like to note that I am no longer an affiliate for Nutmeg. That means you won’t find any affiliate links in my review (or anywhere else on PAS). And you will no longer see the no-fees-for-six-months offer I used to be able to promote as an affiliate. However, the better news is that you can still get six months free of any management fees by registering with Nutmeg via my Refer a Friend link. I will receive a gift voucher if you do this, which is duly appreciated
Don’t forget, also, that the new tax year began on 6 April 2024 and and you now have a whole new £20,000 tax-free ISA allowance for 2024/25. In a change to the rules, you can now open any number of ISAs with different providers in the same tax year, as long as you don’t exceed your overall £20,000 allowance. So opening a stocks and shares ISA with Nutmeg won’t prevent you from also opening one with another S&S ISA provider (should you so wish) later in the financial year.
Moving on, I also have investments with the property crowdlending platform Kuflink. They continue to do well, with new projects launching every week. I currently have around £833 invested with them in 7 different projects paying interest rates averaging around 7%. I also have £540 in my Kuflink cash account after another loan was recently repaid. I am still considering whether to reinvest this money with Kuflink or withdraw it and invest the money elsewhere.
To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.
There is now an initial minimum investment of £1,000 and a minimum investment per project of £500. Kuflink say they are doing this to streamline their operation and minimize costs. I can understand that, though it does mean that the option to test the water with a small first investment has been removed. It also makes it harder for small investors (like myself) to build a well-diversified portfolio on a limited budget.
One possible way around this is to invest using Kuflink’s Auto/IFISA facility. Your money here is automatically invested across a basket of loans over a period from one to five years. Interest rates range from 7% to around 10%, depending on the length of term you choose. Full up-to-date details can be found on the Kuflink website.
You can invest tax-free in a Kuflink Auto IFISA. Or if you have already used your annual ISA allowance elsewhere, you can invest via a taxable Auto account. You can read my full Kuflink review here if you wish.
Moving on, my Assetz Exchange investments continue to generate steady returns. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.
Since I opened my account, my AE portfolio has generated a respectable £188.95 in revenue from rental income. As I said in last month’s update, capital growth has slowed, though, in line with UK property values generally.
At the time of writing, 12 of ‘my’ properties are showing gains, 2 are breaking even, and the remaining 16 are showing losses. My portfolio is currently showing a net decrease in value of £32.84, meaning that overall (rental income minus capital value decrease) I am up by £156.11. That’s still a decent return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.
The overall fall in capital value of my AE investments is obviously a little disappointing. But it’s important to remember that until/unless I choose to sell the investments in question, it is largely theoretical, based on the most recent price at which shares in the property concerned have changed hands. The rental income, on the other hand, is real money (which in my case I’ve reinvested in other AE projects to further diversify my portfolio).
To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned (especially after Kuflink raised their minimum investment per project to £500). You can actually invest from as little as 80p per property if you really want to proceed cautiously.
As I noted in this recent post, Assetz Exchange is particularly good if you want to compound your returns by reinvesting rental income. This effectively boosts the interest rate you are receiving. Personally, once I have accrued a minimum of £10 in rental payments, I reinvest this money in either a new AE project or one I have already invested in (thus increasing my holding). Over time, even if I don’t invest any more capital, this will ensure my investment with AE grows at an accelerating rate and becomes more diversified as well.
My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate]. Note that as from this financial year (2024/25), you can open more than one IFISA per year.
In 2022 I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).
In January 2023 I added to this with another $500 investment in one of their thematic portfolios, Oil Worldwide. I also invested a small amount I had left over in Tesla shares.
As you can see from the screen captures below, my original investment totalling $1,022.26 is today worth $1,288.64 an overall increase of $266.38 or 26.06%.
As you can see, my Oil WorldWide investment is showing just under 12% profit. That’s okay but not spectacular. Obviously my copy trading investment with Aukie2008 has been doing better. The Oil WorldWide port is currently being rebalanced by eToro, so I am hoping this may boost its performance. The investment team at eToro periodically rebalance all smart portfolios to ensure that the mix of investments remains aligned with the portfolio’s goals, and to take advantage of any new opportunities that may present themselves.
eToro also offer the free eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here. Note that it can also serve as a cryptocurrency wallet, allowing you to send and receive crypto from any other wallet address in the world.
I had three more articles published in June on the excellent Mouthy Money website. The first is How to Save Money on Your Purchases by Haggling. In this I set out a range of tips for saving money by haggling. As I say in the article, you might think this is an ancient practice reserved for bustling bazaars or flea markets in distant lands. But it’s actually a skill that can serve you well in everyday life, even in the modern shopping landscape of the UK.
Also in Mouthy Money last month I revealed How to Cash in on Your Old Gadgets. In this article I described various ways you may be able make money from your old tech (mobile phones, tablets, cameras, satnavs, games consoles, and so on) even if – in some cases – it’s no longer working.
My third article in Mouthy Money in June was Could You Save Money With Home Wind Power? In this article I looked at home wind turbines – what they are, how they work, and the pros and cons of installing one. I also revealed an alternative way of saving money through wind power by investing in a wind farm with Ripple Energy (something I have done myself – see below).
As I’ve said before, Mouthy Money is a great resource for anyone interested in money-making and money-saving. From the wide range of articles published in June, I particularly enjoyed Things We Can Learn From Other Countries About Money by MM’s editor, Edmund Greaves. Ed has lived and worked in various countries around the world, from Argentina to South Africa. He has some eye-opening observations about attitudes to money in these different countries and what we in Britain can learn from them.
I also published several posts on Pounds and Sense in June. Some are no longer relevant due to closing dates having passed, but I have listed the others below.
In How to Ensure You Can Cast Your Vote in the General Election, I set out some tips to ensure you are able to cast your vote in the General Election on 4th July 2024. Among other things, I highlighted some issues that older people may face. I also discussed the requirement to bring some form of photo ID to the polling station with you.
Also in June I published How to Protect Your Savings and Investments Under a Labour Government. With the likelihood of this increasing, in this post I set out some hints and tips to help preserve your assets in light of the tax and other economic changes that Labour may introduce. Of course, many of these tips would apply equally to a new government of any persuasion in these challenging times.
Another post was my Review of the New Trading 212 Cash ISA. This new product from the popular Trading 212 platform has been generating a lot of interest, so in this post I took a closer look, setting out the pros and cons as I see them. I also explained why I have opened a Trading 212 Cash ISA myself
A little to my surprise, Trading 212 also reopened their free share offer last month, so I updated and republished my blog post Get a Free Share Worth Up to £100 With Trading 212. This explains how, if you haven’t done so already, you can get a free share when you open a new Invest or Stocks ISA with Trading 212. Note that opening a Cash ISA alone will not qualify you for a free share, but of course you can do both. My advice is to start by opening a Stocks ISA or (non-ISA) Invest account to qualify for your free share, and apply for the Cash ISA after that.
Finally, I published Could You Benefit From Help to Save? This is a government-backed savings account that offers a generous bonus to low-income earners. Launched in September 2018, it aims to encourage regular savings by offering a 50% bonus on the amount saved over four years. There are no age limits to apply, but you must be in receipt of one of three work-related benefits. See my blog post for more information.
Next, a few odds and ends. Last time I mentioned that I recently invested some money (just over £1,000) in a Scottish wind farm project via a platform called Ripple Energy. The way this works is that you pay a one-off fee towards building the wind farm, and in exchange receive lower-cost, ‘green’ electricity once the wind farm is up and running. This will continue for the life of the wind farm (an estimated 20 years). The original closing date for this was the end of May, but the date was extended and the share offer is still open at the time of writing.
If you’re interested in learning more, you can visit the Ripple website via my referral link. If you then decide to invest yourself, you will get a £25 bonus credited to your account when generation starts (and so will I). Note that you will need to invest a minimum of £1,000 to qualify for the £25 bonus, but you can invest from as little as £25 if you like.
Also as mentioned last time, I recently invested a small amount (£500) via a property loan investment platform called Crowdstacker. I have followed Crowdstacker for some time but never got around to investing with them. They are somewhat similar to Kuflink, but their minimum investment per project is lower (just £100) which makes building a diversified portfolio easier. In addition, rates of return are higher, typically 12% to 16%. Obviously higher returns are generally associated with higher risks, and it’s important to bear this in mind when investing – though as all loans are secured against property, you do have some protection. All investments are available in the form of a tax-free IFISA within your overall £20,000 annual ISA allowance.
Crowdstacker doesn’t have a referral programme as far as I know, so I am just sharing this info out of interest. If anyone has any questions or comments about Crowdstacker, feel free to leave them below as usual.
Finally, my usual reminder that you can also follow Pounds and Sense on Facebook or Twitter/X. Twitter/X is my number one social media platform these days and I post regularly there. I share the latest news and information on financial (and other) matters, and other things that interest, amuse or concern me. So if you aren’t following my PAS account, you are definitely missing out!
That’s all for today, except to remind you to get out and vote on 4th July. I know apathy holds sway across large parts of the country right now, but unless you cast your vote in the general election you can’t really complain about how things turn out subsequently!
As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss. Note also that posts on PAS may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!
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Summer is here (just about!) so it’s time for another exciting giveaway on Pounds and Sense. This one is themed around Father’s Day, which this year is on Sunday June 16th.
I have clubbed together with some of my fellow UK bloggers to provide a bunch of great prizes guaranteed to put a grin on any dad’s face. And the best news is, it’s entirely free to enter! The giveaway is open now and will close at 11.45 am on Sunday June 16th.
This event has (again) been organized by Rowena Becker, who blogs at My Balancing Act. No small amount of effort has been involved in arranging and co-ordinating it, so many thanks again to Rowena for her hard work and dedication.
Without further ado, then, I’ll hand you over to Rowena to introduce the giveaway…
The Giveaway
This Father’s Day, prepare to delight the special man in your life with an extraordinary giveaway brought to you by a collaboration of top UK bloggers. We’ve joined forces to curate a bundle of prizes that promises not only to impress but also to provide moments of joy. This giveaway is your chance to give your dad something truly special this Father’s Day. Just head to the bottom of this post for details on how to enter and join us in celebrating the incredible men in our lives with a gift that stands out from the rest. Don’t miss this opportunity to make Father’s Day unforgettable this year!
Meet the Bloggers
In order to be able to bring you this incredible giveaway, some of the UK’s top bloggers got together. A massive thank you to our bloggers! The bloggers taking part are:
Celebrate Father’s Day in style with theOpinel Barbecue Set! This timeless set is the perfect companion for socialising and dining with friends, offering a blend of practicality and elegance. Crafted in France using eco-friendly local materials, the set includes three essential utensils:
N°12B Folding Knife: Featuring a 16cm stainless steel blade and a durable beechwood handle sourced from French forests, this knife is equipped with a safety collar for secure locking in open and closed positions. Complete with a built-in bottle opener, this versatile tool is a must-have for any outdoor gathering.
Spatula+: Crafted from stonewashed finish stainless steel, this spatula attaches to the N°12B knife handle and secures in place with the safety collar. With a generous 8.5cm x 20cm surface area, it simplifies food handling with its narrow angle and beveled edges for precise scraping and separating.
XL Tongs: Measuring 40cm in length, these stonewashed stainless steel tongs ensure easy and safe food handling. Their asymmetrical heads offer versatility, allowing you to grip both large and small items effortlessly, while the grid-lifting slot enhances convenience during grilling sessions.
Don’t miss this chance to win this exceptional Opinel Barbecue Set for the dad in your life!
Team GB: Jokesaws Medals in the Making 1000 piece Jigsaw
Prepare for excitement with “Medals in the Making” – a vibrant 1000 piece jigsaw puzzle, included in our Father’s Day Giveaway prize bundle. Join Team GB in a whirlwind of Olympic events featuring skateboarders, swimmers, cyclists, and sprinters. This officially licensed puzzle is part of Gibson Puzzle’s humorous Jokesaws range, promising entertainment and laughter as you piece together this energetic scene painted by Phil Dobson. Get your dad ready for a fun challenge filled with hidden gems and jokes! The perfect gift this Father’s day!
African Shea Black Soap 120g from Aviela
Introducing the luxuriousAfrican Shea Black Soap 120g as a delightful addition to our Father’s Day prize bundle, making it a perfect gift choice. Handcrafted with care, this gentle cleansing soap bar is enriched with pure Shea Butter, Cocoa Pod Ash, and nourishing natural oils like Coconut and Neem. Its moisturizing formula, rich in essential fatty acids and vitamins, effectively cleanses while soothing the skin, offering a pampering experience for dads.
African Orange Hand and Body Wash from Evolve Organic Beauty
Presenting the indulgentAFRICAN ORANGE AROMATIC HAND & BODY WASH (250ml) as a luxurious addition to our Father’s Day prize bundle, offering a perfect gift choice. Formulated with natural Coconut and Sugar Extracts, this aromatic wash gently cleanses and hydrates while preserving the skin’s pH balance. Enriched with Organic Aloe Vera, it nourishes and soothes, leaving a delightful scent of blood orange, vanilla, black pepper, and cedarwood. Treat dad to this organic hand wash for a pampering and comforting experience.
Kanoodle® Ultimate Champion from Learning Resources
Our lucky winner will get to experience the thrill of the #KanoodleChallenge as it’s part of our Father’s Day prize bundle, offering a chance to become theKanoodle Ultimate Champion! With 500 diverse 2D and 3D puzzle challenges, this game will delight dads seeking a stimulating mental workout. Perfect for gifting, it combines fun, logic, and portability in one exciting package.
How to Enter
You can enter the Giveaway by completing as many Rafflecopter widget entry options below as you like. All entries will be collected, and one winner will be randomly chosen via Rafflecopter. Good luck!
The giveaway will run from 3 pm 8th June 2024 to 11.45 am 16th June 2024.
The winners will be notified by email from rowena@mybalancingact.co.uk
The winner will have 7 days to respond after which time we reserve the right to select an alternative winner.
This prize draw is in no way sponsored, endorsed or administered by, or associated with, Facebook, Instagram, X, YouTube, BlogLovin or Pinterest or any other social media platform.
Prize open to over 18s only. Age verification may be required to receive some prizes.
Some or all of the prizes may take a few weeks to arrive.
If any prizes are out of stock then we will do our best to find a suitable replacement but cannot guarantee it.
Anyone who unfollows before the giveaway ends or doesn’t complete the required entry action will be disqualified.
The prize is non-transferable, non-refundable and cannot be exchanged for monetary value.
We may be using a parcel service or Royal Mail for some of the prizes and their standard compensation will apply in the event of loss or damage.
Some items may be sent directly by the supplier and we do not have responsibility if these go missing and we cannot replace these.
In the unlikely event, one of the companies withdraws a prize, we cannot offer an alternative.
The winner’s name will be stated on some or all of our bloggers’ websites and announced on Twitter and other social media channels. It will also be displayed on the Rafflecopter entry form. By entering this prize draw, you give your permission for this.
Please note the winner may have the same name as you so if you see your name displayed, be aware that you are not the winner unless you have been notified by us. There may be some delays in receiving prizes.
Good luck, and I hope a Pounds and Sense reader wins this fabulous prize bundle!
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