What caught my eye this week.
Rishi Sunak didn’t hike capital gains tax in the Budget. I took it a little personally after I’d voluntarily conjured up a five-figure tax charge, partly fearing he’d double the rate I’d pay.
However I’m not too miffed.
For one thing, the unsheltered shares I sold were mostly of the MAD GAINZ variety that did ridiculously well in the pandemic. And these growth stocks have continued to be hammered since I sold.
Indeed at one point on Friday my former highest-flyer only needed to slip another 5-6% for me to be up on selling even after the future tax charge.
Alas, it bounced into the close. Bittersweet.
Another reason is I still have more capital gains to deal with in the future. Bitcoin, anyone? Though that one could well take care of itself in time, given its mercurial record.
Anyway, remember to always invest in an ISA or SIPP to avoid this nonsense.
Beyond the Budget
The more worrisome reason I’m not too upset that I sold is some pundits believe big changes could still arrive on so-called ‘Tax Day’.
That’s set for 23 March.
According to the Financial Times [Search result]:
A Treasury decision to hold a “tax day” three weeks after the Budget will be a bellwether for long-term changes in government tax policy, including on capital gains and environmental levies.
My standard policy has been to mostly ignore clickbait articles about this or that tax break being set to get the chop. Fearmongering comes up every year, and most of the time nothing much happens.
However we know the UK will have a harder time balancing the books in the future, thanks to Covid. Freezing personal allowances and nudging up corporation tax in the Budget was meaningful, but will it be sufficient?
Here’s all the Budget
- Key Budget points at a glance – BBC
- More main points from Rishi Sunak’s Budget speech – ThisIsMoney
- How to prepare for what comes next [Search result] – FT
- What was in the small print? – Which
- Extra 1.3m will start paying income tax over next five years – Guardian
- Sunak claims Budget measures will create ‘Generation Buy’ – Guardian
- How the government’s new 5% deposit mortgages will work – MSE
Have a great weekend all.
Dynamic asset allocation and withdrawal in retirement – Monevator
Money is stored energy – Monevator
From the archive-ator: Trust life assurance to do the right thing – Monevator
Note: Some links are Google search results – in PC/desktop view you can click to read the piece without being a paid subscriber. Try privacy/incognito mode to avoid cookies. Consider subscribing if you read them a lot!1
Q&A: The bond market shock [Search result] – FT
200,000 women in line for pension back-payments of c. £13,500 – Guardian
UK-EU trade falls sharply as Brexit disruption bites [Search result] – FT
UK house price growth slows for third month, says Halifax – Reuters
EU to launch legal proceedings against the UK ‘very soon’ – Guardian
The UK Chancellor just set out largest net tax rise announced in any budget since Norman Lamont’s in 1993 – IfG via Twitter
Products and services
The best savings accounts right now – Be Clever With Your Cash
UK contact-less payment limit to rise to £100 – Guardian
M&S to close all current accounts in August and shut bank branches – MSE
Sign-up to Freetrade via my link and we can both get a free share worth between £3 and £200 – Freetrade
Investment trusts have beaten equivalent [active] funds in most sectors over 10 and 20 years – ThisIsMoney
Homes for sale with literary connections, in pictures – Guardian
Comment and opinion
How to survive and make money in The Matrix – Portfolio Charts
Why money is hard – Banker on FIRE
How worrisome is the rise in interest rates? – Pragmatic Capitalism
Bleak future for long-term government bonds – A Wealth of Common Sense
Debt is a negative bond – White Coat Investor
Why do Smart Beta ETFs perform so poorly? – Klement on Investing
Finance as culture – luttig’s learnings
When everyone’s a genius – Morgan Housel
Jamie Catherwood and Rick Ferri on the market [Podcast] – Bogleheads
Naughty corner: Active antics
The resilient mechanics within ARK ETFs [Search result] – FT
What happened to gold? – The Irrelevant Investor
Berkshire Hathaway’s annual letter [PDF] – Berkshire Hathaway
What? Spend Bitcoin? – Humble Dollar
Investors ponder stimulus size as rates rise – Investing Caffeine
Reddit thinks it knows Bill Ackman’s SPAC target – Institutional Investor
Covid cases collapsing in the UK – Oliver Johnson via Twitter
DNA from Neanderthals affects vulnerability to Covid-19 – Economist
People trying to leave England without travel form face £200 fine – Guardian
A portal into a universe without Covid: New Zealand – New York Times
Quarantine pods are falling apart – The Atlantic
Kindle book bargains
Business Adventures: 12 Classic Tales from Wall Street by John Brooks – £0.99 on Kindle
Money Saving Book: Simple Hacks for a Happy Life by Holly Smith – £0.99 on Kindle
Reset: How to Restart your Life and Get F.U. Money by David Sawyer – £0.99 on Kindle
Billion Dollar Loser: The Epic Rise and Fall of WeWork by Reeves Weideman – £0.99 on Kindle
It’s not a fact that owning a Kindle makes you more attractive to the opposite sex.
The problem with the world’s insatiable appetite for sand – CNBC
MPs report UK government has no climate change plan – BBC
Off our beat
The power of low expectations – Get Rich Slowly
What happened to Jordan Peterson? – The Atlantic
“Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time.”
– Morgan Housel, The Psychology of Money
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The post Weekend reading: Budget 2021 might not be the end of it appeared first on Monevator.