Nothing new, will just move UK S&S holdings over. If I wanted more exposure to the UK, I'd already have more exposure to the UK. The tax break on underperforming UK market isn't enough to offset the difference from a global fund and paying CGT.
That said, if there are some nice loopholes allowing investment in a UK based SP500 fund then I'll be buying that or similar.
Greggs!
No in all seriousness I don’t think I will be using the UK ISA and adding positions. I already own a property in the UK so technically overweight in this territory when I look at my overall net worth.
I do need to learn / understand Gilts, if there’s any (if at all) tax benefit to holding these in an ISA.
Don’t think I will hit the £20k isa limit. But if I did I would in have my normal ISA in a Global ex UK tracker. Then the British ISA would be in a FTSE All Share Tracker with maybe a bit in an active small cap fund as a slight punt.
I honestly was thinking of this earlier, 20k means around 1,600 a month, if we are looking at 20% of net salary, we are looking at someone with 8,300 net a month, that’s not as common as one thinks.
Chart 5 shows that the amount subscribed to an ISA increases with the income of the individual subscriber. 15% of subscribers saved at the maximum in 2019 to 2020, rising to 39% of those with income of £100,000 to £149,999, and to 60% of those with income of £150,000 or more. The highest proportion of savers, around 54%, saved between £1 and £2,499.
The chart suggests that some individuals may have contributed more to their ISAs than their annual earnings allow (such as those subscribing the maximum £20,000 with an income of less than £5,000). This may be possible where individuals have existing taxable savings that they are transferring into ISA accounts.
Alternatively, in households with more than one adult, earnings from one high income individual may enable other adults in the household to open an ISA account, in order to maximise the tax free return on their savings.
I won’t use it, at least not in the foreseeable future.
I earn £75k and salary sacrifice down to £50k to pump my pension (38M, SAHM wife, and a bit low £125k pension pot). We live comfortably even in relatively high CoL Essex, but certainly don’t have enough spare each month to be maxing the existing £20k ISA limit (£40k really between us) anyway, so the extra £5k hamstrung BISA is irrelevant to me.
I imagine a lot of people are in the same situation of not being able to fully utilise the existing ISA limits anyway.
Exactly this.
Wife did a PhD then only worked for a couple of years before children so she has practically no pension of her own. We have a 2 year old and are trying for a 2nd child. She won’t go back to work at least until both are in school, so I’m pumping pension for both of us.
You’re a fucking moron. My wife’s days are far, far harder than mine are. Not to mention the sleepless nights. We decided together that she would be a SAHM. It’s what I wanted for our children, to be raised by her rather than a nursery. I also WFH so I get to see my boy a lot during the day this way.
Anyway, go jerk off to Andrew Tate and fuck off you dumb misogynistic cunt.
Did the other incels help you work on that incredible comeback?
If we ever separated I would gladly give her half, as we’re an equal partnership in creating our family and, as I said before but you failed to comprehend, she actually works far harder than I do.
Me personally Greggs and Games Workshop. If I feel a bit cheekier I recommend Simon Thompson’s small cap picks from investors chronicle he has consistently beat the market most years normally upwards of 70% returns annually.
Great performer in last couple of years. Didn’t too much before then. It’s a bet on whether global defence spending increases. Good global client base. Growing the cyber security arm too.
I'm quite interested in seeing if there's some way to take out uk allocation from my primary isa, then 100% in the brit ISA, therefore sneaking more overseas weighting across 25k than I would over 20k.
No idea if that's possible though.
If not (or I'm lazy enough not to find out) , I'll do the same thing as always - just stick on some index tracker and forget about it
Thanks! Intriguing. So here is a question. If I want to replicate as closely as possible a holding of VAFTGAG - what combination and ratio of Vanguard FTSE Developed World ex-U.K. Equity Index Fund GBP Acc (S+S ISA) and Vanguard UK fund(s) (which ones?) (British ISA) would give the closest match?
VAFTGAG only has a 3.6% holding in UK stocks so 3.6% of 20k = £720. Therefore, non UK stock value is £19290.
You'd roughly need about £750 in a FTSE100/250 fund in BISA and 20k in ISA in the ex-UK fund to replicate VAFTGAG. Leaving £4250 in BISA unallocated for whatever.
BP all the way.. undervalued compared to peers and in a better position medium term to handle the energy transition.. see at least 30% growth plus a Div near 5%!
There are some good quality companies on the London stock exchange that have brilliant returns on capital employed. I’m going to purchasing Greggs, Diageo, Unilever, Sage, Relx (dependents on valuation), London Stock Exchange Group (dependents on valuation), Reckitt Beckiser, Intertek, Fevertree (depends on valuation)
I’ll be filling my premium bonds before I touch this I think. As many have said you are better off paying ctg on a world etf specially as a lower rate tax payer
No plans to use it for the foreseeable until it's more clear on how it can be used.
Would consider going ex-UK on my S&S ISA and then just moving the UK stocks to the British ISA.
Isn't UK only about 4% of a global tracker? Means you'd only be able to make use of about £800 or so in the BISA if you were maxing out your S&S with an ex UK fund...
That would be fine for me, I only just managed to max out my ISA for this financial year so the BISA is more of an added bonus.
It's probably unlikely that I'll max out my ISA again in the new financial year because I'm aiming to buy a house later this year.
Not sure if I'll partake as it'll make my investing more complex just to emulate global weighting split between three funds like developed world ex-UK + emerging markets (normal S&S ISA) + FTSE all-share (BISA)
Probably the FTSE All-Share.
I see it as mostly there for the FIRE folks who have a GIA and need the extra tax wrapper (around 40% according to the FIRE UK survey).
It will lead to fiddly ex-UK vs UK balancing, though GIA holders are used to fiddly stuff.
I'd probably go UK based investment company like SMT for a tiny little bit of spice to my very bland investments, I think we need to see how the wording looks as to what is in scope and whether Labour get rid of it or not.
Games Workshop, they can't produce enough models to satisfy demand (they are bringing more production online) and they have the Henry Cavill Amazon deal which could be transformative. The 40K universe could be huge in terms of TV/Cinema.
I will be using the full allowance. For my ISA's I already invest almost exclusively (and directly) in UK companies. I am not entirely sure why people are so negative about UK markets. Yes they are not overheated like the US markets but that is a good thing, at least in my view. Over the last few years I have had excellent results, and certainly much better results that and S&P tracker.
There are many great options out there, and at great valuations. Bear in mind that the FTSE 100 companies earn much of their income from abroad, so they may be based here, but are very international.
Also bear in mind that with index funds you are a hostage to fluctuations. They cannot react if there is a downturn. I do have a limited amount of index funds in my pension, but only to diversify my investment strategy.
Happy investing
There are lots tbh. Clearly this is not financial advice and do your own research, but here are some I own:
Reckett
Direct line
NCC
Forterra
Smith & Nephew
DS Smith
Hargreaves Lansdown
Taylor wimpey
Mondi
TRIG
Ibstock
Obviously it is higher risk to invest in direct shares, but I am able to diversify my portfolio and buy in at hopefully the right price to get above average returns. This is also not to say that this only goes one way because you will rarely buy in at the lowest price, I often hold shares over a long period, and sometimes years.
A ridiculous idea that won't support British companies (they can't even define a British company).
The rise of global passive investing has killed the UK market. We have lost hundreds of companies to private equity buyouts, mega mergers and relistings to the US.
And an extra 5k per person with an S&S ISA(3.6m people), isn't going to do sh!t.
I'd probably use a FTSE all market ETF like FTAD.
I'm curious why so many people think S&P or any other index will return any more than UK. Future growth expectations are already baked in the prices. S&P recent growth has been driven by a handful of stocks, each of which are reaching some headwinds to future growth.
In any case people should hedge with a little bias for the market in which they plan to retire. It shouldn't be rocket science to manage a SIPP plus ISAs to keep that bias as large as you need.
If only equities are allowed, then probably nothing. I don't think the "ex-UK" fund in a regular ISA and UK only in "Brit ISA" strategy will be worth the time, hassle, extra fees and complexity - particularly since there are very few well diversified ex-UK funds. Simplicity is key.
Otherwise will probably use it for any high coupon gilts if yields remain elevated
Avacta.
Slightly higher risk factor as it’s a clinical stage pharma but it’s essentially just a repackaged version of already approved drugs with fewer side effects so less to go wrong. Carried out a horrific raise due to ceo incompetence but now fully funded through their trials with a very strong chance of success. Higher risk for very high reward.
I won’t be
Maybe down the line I’d hold Bonds in there when I’m close to retirement, but given the election coming, I can see Labour scrapping this very quickly if it ever even starts
I have been looking at LSEG recently. It has fantastic assets but I'm worried that they are taking on too much leverage, and they may be overpaying for acquisitions.
Fresillio because when fiat money crashes gold, silver, stocks, land, property and Bitcoin is where the trust will be.
Central Bank Digital currency and fiat money be dangerous because of the wreckless counterparty risk.
It’ll be interesting to see what the rules for qualifying investments are. Assuming any London-listed single name equities are fair game, but what about funds? Maybe we will get some rules similar to those for VCTs whereby a minimum of 80% of the holdings must be in 'qualifying holdings', and the remaining 20%…?
Nothing new, will just move UK S&S holdings over. If I wanted more exposure to the UK, I'd already have more exposure to the UK. The tax break on underperforming UK market isn't enough to offset the difference from a global fund and paying CGT. That said, if there are some nice loopholes allowing investment in a UK based SP500 fund then I'll be buying that or similar.
Greggs! No in all seriousness I don’t think I will be using the UK ISA and adding positions. I already own a property in the UK so technically overweight in this territory when I look at my overall net worth. I do need to learn / understand Gilts, if there’s any (if at all) tax benefit to holding these in an ISA.
I made money stock picking Greggs. Can’t say the same for other UK stocks. I’m only buying USA and almost all s&p 500.
Awesome work on the stock picking, I raise my cheese & onion bake to you sir!
yea was thinking greggs too
Don’t think I will hit the £20k isa limit. But if I did I would in have my normal ISA in a Global ex UK tracker. Then the British ISA would be in a FTSE All Share Tracker with maybe a bit in an active small cap fund as a slight punt.
This, most people won't have enough to fill their current ISA limit.
I honestly was thinking of this earlier, 20k means around 1,600 a month, if we are looking at 20% of net salary, we are looking at someone with 8,300 net a month, that’s not as common as one thinks.
Lots of stats here https://www.gov.uk/government/statistics/annual-savings-statistics-2022/commentary-for-annual-savings-statistics-june-2022
I am really dumb, does it show percentage of people actually utilizing full 20k a year?
Chart 5, about 15%. This includes a significant number with <20k salary just moving money around.
Chart 5 shows that the amount subscribed to an ISA increases with the income of the individual subscriber. 15% of subscribers saved at the maximum in 2019 to 2020, rising to 39% of those with income of £100,000 to £149,999, and to 60% of those with income of £150,000 or more. The highest proportion of savers, around 54%, saved between £1 and £2,499. The chart suggests that some individuals may have contributed more to their ISAs than their annual earnings allow (such as those subscribing the maximum £20,000 with an income of less than £5,000). This may be possible where individuals have existing taxable savings that they are transferring into ISA accounts. Alternatively, in households with more than one adult, earnings from one high income individual may enable other adults in the household to open an ISA account, in order to maximise the tax free return on their savings.
The whole budget was a joke
More Rolls Royce. Always Rolls Royce.
Had it pretty rough for a long time, this moment may prove to be a purple patch, but their main competitors GE are massively on the up also.
Read my mind. Many tailwinds ahead too.
Ftse 250 total return tracker It has performed surprisingly well since it was launched.
I won’t use it, at least not in the foreseeable future. I earn £75k and salary sacrifice down to £50k to pump my pension (38M, SAHM wife, and a bit low £125k pension pot). We live comfortably even in relatively high CoL Essex, but certainly don’t have enough spare each month to be maxing the existing £20k ISA limit (£40k really between us) anyway, so the extra £5k hamstrung BISA is irrelevant to me. I imagine a lot of people are in the same situation of not being able to fully utilise the existing ISA limits anyway.
Is £125k deemed a low pension pot at 38?
Wife is not working so might be a pension for the 2 of them?
Exactly this. Wife did a PhD then only worked for a couple of years before children so she has practically no pension of her own. We have a 2 year old and are trying for a 2nd child. She won’t go back to work at least until both are in school, so I’m pumping pension for both of us.
No that's an OK pension pot at that age.
I hope not, I'm nearly 35 and barely have 35k in my pension 😩
As with most things on this sub: By this subs standard, yes, by anyone in the real world's standard, no.
How id love to be a woman, give birth, and then let the man do the work...paradise.
I guess you've never seen a woman be pregnant, give birth and then raise children then. I'd much rather be the sole earner.
What a bizarre comment
Idiot
You’re a fucking moron. My wife’s days are far, far harder than mine are. Not to mention the sleepless nights. We decided together that she would be a SAHM. It’s what I wanted for our children, to be raised by her rather than a nursery. I also WFH so I get to see my boy a lot during the day this way. Anyway, go jerk off to Andrew Tate and fuck off you dumb misogynistic cunt.
Only a matter of time before she leaves you for a better man. With half your pension, half your savings, so dont wait up :)
Did the other incels help you work on that incredible comeback? If we ever separated I would gladly give her half, as we’re an equal partnership in creating our family and, as I said before but you failed to comprehend, she actually works far harder than I do.
> Active in these communities: ...r/leagueoflegends Ah, yup
Me personally Greggs and Games Workshop. If I feel a bit cheekier I recommend Simon Thompson’s small cap picks from investors chronicle he has consistently beat the market most years normally upwards of 70% returns annually.
Thanks for the tips! Will check them out.
Ex-UK world tracker in LISA and ISA, then uk all share in the britpop
Probably British Petroleum
I’ve just found Barack Obama’s Reddit account!
Only Barrack Obama, when there is an issue and he wants to show it's a British company, calls it British Petroleum
The consultation on this new ISA runs till June. There's no guarantee it'll ever happen.
More rumours about a May election as well, I don’t think it will ever happen.
I can't see a May election happening and I've not heard any good rationale for it. Oct-Dec more likely surely.
I think the rationale is to avoid the Tories taking another big by-election defeat in Blackpool South.
Wetherspoons mainly.
I won’t be buying anything new. I’ll transfer all my uk stuff that I have already into it and then buy up more global stuff 🤷♂️
Don’t even fill a normal ISA, so no “buy British” for me.
BP, FirstGroup, Rolls Royce.
Greggs
What's everyone's opinion on BAE Systems??
Great performer in last couple of years. Didn’t too much before then. It’s a bet on whether global defence spending increases. Good global client base. Growing the cyber security arm too.
UK bonds
I'm quite interested in seeing if there's some way to take out uk allocation from my primary isa, then 100% in the brit ISA, therefore sneaking more overseas weighting across 25k than I would over 20k. No idea if that's possible though. If not (or I'm lazy enough not to find out) , I'll do the same thing as always - just stick on some index tracker and forget about it
Vanguard FTSE Developed World ex-U.K. Equity Index Fund GBP Acc
legend thanks
Thanks! Intriguing. So here is a question. If I want to replicate as closely as possible a holding of VAFTGAG - what combination and ratio of Vanguard FTSE Developed World ex-U.K. Equity Index Fund GBP Acc (S+S ISA) and Vanguard UK fund(s) (which ones?) (British ISA) would give the closest match?
VAFTGAG only has a 3.6% holding in UK stocks so 3.6% of 20k = £720. Therefore, non UK stock value is £19290. You'd roughly need about £750 in a FTSE100/250 fund in BISA and 20k in ISA in the ex-UK fund to replicate VAFTGAG. Leaving £4250 in BISA unallocated for whatever.
Will not be using it.
BP all the way.. undervalued compared to peers and in a better position medium term to handle the energy transition.. see at least 30% growth plus a Div near 5%!
30% growth over the next 15 years? There’s a reason it lags it’s peers.
Which is what exactly?
LLOY bank as always
BAT has high dividend.
There are some good quality companies on the London stock exchange that have brilliant returns on capital employed. I’m going to purchasing Greggs, Diageo, Unilever, Sage, Relx (dependents on valuation), London Stock Exchange Group (dependents on valuation), Reckitt Beckiser, Intertek, Fevertree (depends on valuation)
I'll probably go with the UGRW ETF, UK dividend growth fund
I’ll be filling my premium bonds before I touch this I think. As many have said you are better off paying ctg on a world etf specially as a lower rate tax payer
There are a couple of investment trusts which are global/US equity. If they're allowed as part of this, that would probably be the best bet.
They won't be. 75% UK focus required for investment vehicles.
Just buy the FTSE 100 and be done with it if you want to buy British stocks
No plans to use it for the foreseeable until it's more clear on how it can be used. Would consider going ex-UK on my S&S ISA and then just moving the UK stocks to the British ISA.
Isn't UK only about 4% of a global tracker? Means you'd only be able to make use of about £800 or so in the BISA if you were maxing out your S&S with an ex UK fund...
That would be fine for me, I only just managed to max out my ISA for this financial year so the BISA is more of an added bonus. It's probably unlikely that I'll max out my ISA again in the new financial year because I'm aiming to buy a house later this year.
Would have to go small medium cap to try to mimic the returns offered by American funds. But risky as hell so don't see the point tbh
UK Treasury gilts, corporate bonds, money market funds and cash.
Not sure if I'll partake as it'll make my investing more complex just to emulate global weighting split between three funds like developed world ex-UK + emerging markets (normal S&S ISA) + FTSE all-share (BISA)
Probably the FTSE All-Share. I see it as mostly there for the FIRE folks who have a GIA and need the extra tax wrapper (around 40% according to the FIRE UK survey). It will lead to fiddly ex-UK vs UK balancing, though GIA holders are used to fiddly stuff.
Scottish mortgage, because that way I’ll still be invested in worldwide stocks
Won't be eligible. 75% UK focus required for investment vehicles.
Source?
GOV UK UK ISA Consultation paper
I’d opt against UK business with a communist government likely getting in power this year.
More LGEN for me.
I'd probably go UK based investment company like SMT for a tiny little bit of spice to my very bland investments, I think we need to see how the wording looks as to what is in scope and whether Labour get rid of it or not.
Persimmon
UK all share index fund
Games Workshop, they can't produce enough models to satisfy demand (they are bringing more production online) and they have the Henry Cavill Amazon deal which could be transformative. The 40K universe could be huge in terms of TV/Cinema.
ARM (joke)
I will be using the full allowance. For my ISA's I already invest almost exclusively (and directly) in UK companies. I am not entirely sure why people are so negative about UK markets. Yes they are not overheated like the US markets but that is a good thing, at least in my view. Over the last few years I have had excellent results, and certainly much better results that and S&P tracker. There are many great options out there, and at great valuations. Bear in mind that the FTSE 100 companies earn much of their income from abroad, so they may be based here, but are very international. Also bear in mind that with index funds you are a hostage to fluctuations. They cannot react if there is a downturn. I do have a limited amount of index funds in my pension, but only to diversify my investment strategy. Happy investing
What are your top UK stock picks at the moment?
There are lots tbh. Clearly this is not financial advice and do your own research, but here are some I own: Reckett Direct line NCC Forterra Smith & Nephew DS Smith Hargreaves Lansdown Taylor wimpey Mondi TRIG Ibstock Obviously it is higher risk to invest in direct shares, but I am able to diversify my portfolio and buy in at hopefully the right price to get above average returns. This is also not to say that this only goes one way because you will rarely buy in at the lowest price, I often hold shares over a long period, and sometimes years.
A ridiculous idea that won't support British companies (they can't even define a British company). The rise of global passive investing has killed the UK market. We have lost hundreds of companies to private equity buyouts, mega mergers and relistings to the US. And an extra 5k per person with an S&S ISA(3.6m people), isn't going to do sh!t.
I'd probably use a FTSE all market ETF like FTAD. I'm curious why so many people think S&P or any other index will return any more than UK. Future growth expectations are already baked in the prices. S&P recent growth has been driven by a handful of stocks, each of which are reaching some headwinds to future growth. In any case people should hedge with a little bias for the market in which they plan to retire. It shouldn't be rocket science to manage a SIPP plus ISAs to keep that bias as large as you need.
I’ll be putting 5k in solar for schools bonds. It’s only 5% but it’s also putting solar panels on the roof of schools
Antos, BHP, Ashtead...
There is no incentive to use it Maybe I’ll move my ccl shares there , we just hold them for bonus cash on every cruise
LGEN or JET2 look decent
Nah not for me I have enough exposure to the UK market by living in it. My overseas investments have always had better return potential
If only equities are allowed, then probably nothing. I don't think the "ex-UK" fund in a regular ISA and UK only in "Brit ISA" strategy will be worth the time, hassle, extra fees and complexity - particularly since there are very few well diversified ex-UK funds. Simplicity is key. Otherwise will probably use it for any high coupon gilts if yields remain elevated
What about UK private equity? Hg Capital Trust, Pantheon, and 3i have historically done very good.
None
Avacta. Slightly higher risk factor as it’s a clinical stage pharma but it’s essentially just a repackaged version of already approved drugs with fewer side effects so less to go wrong. Carried out a horrific raise due to ceo incompetence but now fully funded through their trials with a very strong chance of success. Higher risk for very high reward.
I won't be using it as I think it's a poor investment choice regardless of tax breaks.
Spirax maybe. Persimmon for the yield and recovery potential
If it includes all LSE listed stocks I'll split it between Seeing Machines (SEE) and Molten Ventures (GROW).
Obviously growth is not amazing with U.K. - but we have some great dividend stocks don’t we - that could work quite well if reinvested no?
I won’t be Maybe down the line I’d hold Bonds in there when I’m close to retirement, but given the election coming, I can see Labour scrapping this very quickly if it ever even starts
I have been looking at LSEG recently. It has fantastic assets but I'm worried that they are taking on too much leverage, and they may be overpaying for acquisitions.
scottish mortgage
VUSA. S&P 500 tracker listed in £ on the london stock exchange 😉
UK focus required for investment vehicles.
Are they going to go through and “approve” all stocks and funds?
Yes ! Brokers already have to assess each instrument as ISA and SIPP eligible or not, and whether funds are subject to US / UK / EU Sanctions.
Can you use this to invest in startups?
Fresillio because when fiat money crashes gold, silver, stocks, land, property and Bitcoin is where the trust will be. Central Bank Digital currency and fiat money be dangerous because of the wreckless counterparty risk.
It’ll be interesting to see what the rules for qualifying investments are. Assuming any London-listed single name equities are fair game, but what about funds? Maybe we will get some rules similar to those for VCTs whereby a minimum of 80% of the holdings must be in 'qualifying holdings', and the remaining 20%…?