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

If you want to make the most of your hard-earned cash and beat the budget, consider these five key points to manage your finances effectively.

Firstly, make use of your ISA allowance. The current annual limit on payments into tax-efficient accounts remains £20,000, but from April 2027, the rules will change for anyone under 65. You can put up to £12,000 into a cash ISA and anything above that into a stocks and shares ISA if you're over 65. Take advantage of the existing allowances before the changes come in.

Secondly, switch your shares to an Isa. With income tax on dividends set to rise, it's worth considering moving your investments into an Isa to avoid paying higher rates. This process, known as "Bed & Isa", involves selling off your investments and then repurchasing them within an ISA wrapper. It's essential to consider the implications of capital gains tax and dividend tax before making any moves.

Thirdly, review your salary sacrifice scheme. The government is introducing a change that will affect employees who pay part of their income into a pension via salary sacrifice from April 2029. If you're affected, use this opportunity to adjust your contributions or explore other salary sacrifice schemes offered by your employer.

Fourthly, give gifts while you can. Changes to inheritance tax (IHT) may impact you if you leave assets above the current threshold. Use tax-free allowances and consider "potentially exempt transfers" to avoid IHT on gifts made during your lifetime.

Lastly, weigh up the new high-value council tax surcharge – commonly known as the "mansion tax". This will hit property owners in England with values over £2 million from 2028, but there's uncertainty surrounding its impact. Consider bringing forward plans to downsize or holding back on making improvements to avoid being pushed over the threshold.

By considering these points and taking proactive steps, you can make the most of your budget and manage your finances effectively.

"Life is 10% what happens to you and 90% how you react to it."

I don’t usually comment but... I'm getting a bit worried about this changes coming in 2027 & 2029 . Like, what if we can't keep up with all these new rules? And that "Bed & Isa" thing sounds like a headache . I've got a friend who's always been good with money, but I'm not sure even she'll be able to navigate all this . Can anyone give me any tips on how to make sense of it all?

man i just had a mate who put all his money into a stocks and shares isa last year and it totally wiped out he was so bummed but then he started using that bed & Isa trick to switch back in and now he's doing alright gotta make sure you're on top of your finances before the rules change next april 2027

I think it's a bit concerning that the ISA allowance is increasing for those under 65, but only up to £12,000, and the rules will change drastically after April 2027... what if some people aren't prepared for this shift? It seems like we should be making more of our own financial decisions rather than following specific rules. Some people might not even know about these changes until it's too late. The government could've done a better job communicating these changes ahead of time, don't you think?

think twice before moving shares into an Isa if u r not sure about tax implications, 2027 rules change might affect ur plans also, what's with the high-value council tax surcharge? £2 milioin is pretty steep maybe consider downsizing instead of paying more taxes

I'm all about saving a buck ! I think this ISA allowance thing is crazy - £12k is just not enough for me. I mean, I've got expenses to cover and bills to pay, you know? And what's with the "Bed & Isa" process? It sounds like a lot of hassle . But hey, if it saves me from paying more in tax, I'm all for it.

I also think the high-value council tax surcharge is just another way for the government to pinch pennies . Like, who's got £2m lying around? And what's wrong with people wanting to upgrade their homes or put some equity into a new property? It's not like we're all millionaires over here .

But in all seriousness, I do think it's good that the government is offering some tax-free allowances and whatnot. Just makes sense to use them while you can, right? And reviewing salary sacrifice schemes is a great idea too - can't say no to extra pension contributions !

omg u gotta start using ur ISA allowance ASAP!!! i mean £12k is a lot but if u dont use it now, it's gone forever lol. and dont even get me started on this "Bed & Isa" thingy... i had to do that last year and it was such a stress fest . but seriously, reviewing ur salary sacrifice scheme is a good idea too, cuz who doesn't love more pension fund . and btw, have u heard about the high-value council tax surcharge? that's like, so not fair. i'm totes considering downsizing or just holding back on renovations... what about u tho?

Just saved £5k on tax last year using ISAs, now I'm feeling like a total boss !

so i think its good that gov is giving us options like ISA allowances & salary sacrifice schemes but i feel like they're kinda limiting the amount we can earn from those things what if they just increased the limit instead? wouldn't that be a better way to help people manage their finances?

Wow I'm still trying to wrap my head around all these changes to tax-advantaged accounts. The idea of having to switch shares into an ISA before April 2027 is pretty interesting , but it's also a bit overwhelming. And what's up with the new high-value council tax surcharge? £2 million is a crazy amount for someone like me to even think about

so its gonna be a big change in 2027 when people under 65 cant put more than £12k into stocks & shares ISA... thats like half the old amount lol... maybe thats why they changed the rules? anyway, i think its a good idea to switch our investments into ISAs before the change 'cause with income tax on dividends rising, we wanna keep as much of that cash as possible and what about those salary sacrifice schemes? idk how i feel about adjusting my pension contributions... might be a good opportunity tho

I'm so done with all the changes to our financial system . Like, I get it, we need to adapt, but honestly, it's just a headache trying to keep track of everything. The ISA allowance thing is especially confusing - £20,000 in 2027? Who has that kind of money saved up by then? And what about the new high-value council tax surcharge? I mean, who's going to be hit with that one? It just feels like more rules to follow and less freedom to spend our hard-earned cash how we want. I guess it's all about being proactive and managing our finances effectively... but can't we just have a little more stability in this crazy world?

I'm telling you something weird about this news... think about it, they're changing the rules on ISAs for people under 65 in 2027? That's just a coincidence or is it? They want to limit our options, man. And what's with the salary sacrifice scheme change in 2029? It's like they're trying to control how much we save for our future. I'm not saying anything bad about them, but there's gotta be some hidden agenda here...

ugh i dont get why ppl need so many changes in their finances lol its like they cant even enjoy a simple life without thinking about taxes & inheritance tax like what if ppl just wanna buy a house or invest in stocks without all these rules holding them back

So you wanna beat the budget? Well, let me tell you, using up your ISA allowance now (£20k for under 65s) is a no-brainer before they change the rules in April '27 . And don't even get me started on switching shares to an Isa - it's basically common sense with income tax rising on dividends . As for salary sacrifice schemes, yeah, if you're affected, use that time to adjust or explore other options... duh! Gift-giving? Use those tax-free allowances before IHT kicks in . And lastly, the high-value council tax surcharge? It's not like it's rocket science - bring forward plans for downsizing or hold back on making improvements if you value your wallet . Easy peasy!

I'm all for maximizing my savings while avoiding those pesky tax hikes . The ISA allowance change in 2027 is a great opportunity to get ahead – it's like finding free money ! As for switching shares into an ISA, gotta keep an eye on the capital gains tax and dividend tax rates, or I might end up with a bigger bill than expected . And don't even get me started on the salary sacrifice scheme changes in 2029... gotta review my pension contributions ASAP . But you know what's not so great? That new high-value council tax surcharge . Not sure how it'll affect people who own luxury homes, but I'm definitely keeping an eye on it . Maybe it's time to consider downsizing or holding back on renovations...

I'm not sure about this "Bed & Isa" thing... selling off investments just to move them into an ISA sounds like a hassle. What's in it for me? How does that actually save me money? Anyone have any sources on how the capital gains tax and dividend tax are gonna play out here?

I'm not sure about all this tax stuff but one thing's for sure - it's always a good idea to have some cash saved up especially with those high-value council tax surcharges on the horizon From what I've seen, most people don't plan ahead when it comes to their finances and that's where the real problems start... maybe we should all just take a deep breath and hope for the best anyway, if you're planning to invest or sell some assets, make sure you do your research and consider all the implications

I'm so done with all these financial changes . Like, I get it, we need to be smart with our cash, but it's getting to the point where we need to read a whole essay just to figure out how to do our own taxes . And what's up with the ISA rules? £20k is fine, but who has that kind of cash saved up in the first place? I mean, if you're lucky enough to have a lot of money set aside, then great, use it! But for the rest of us, it's just more stress added to our lives . And don't even get me started on the council tax surcharge – like, who thought it was a good idea to tax people more just because they own a fancy house?