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How Will You Be Affected? UK Budget Threatens Your Money · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_01: Today, we've got important information about imminent tax hikes.
• 0:06
  SPEAKER_01: If you've got savings in the bank, if you've got a pension, a property, or you're simply trying to build your wealth, more taxes could be coming your way, and they could be in many different shapes and sizes.
• 0:19
  SPEAKER_01: Decisions made in Westminster this month could have a very real impact on your finances.
• 0:24
  SPEAKER_01: It's only three weeks away, and the Prime Minister plus the Chancellor have refused to rule out tax rises.
• 0:30
  SPEAKER_01: The government is under pressure to raise more revenue.
• 0:33
  SPEAKER_01: They need to control spending and they need to deal with Britain's growing financial commitments.
• 0:38
  SPEAKER_01: So what's confirmed?
• 0:39
  SPEAKER_01: What's still rumour?
• 0:41
  SPEAKER_01: And most importantly, if the financial pressures facing Britain continue to grow, what can you do to be prepared?
• 0:48
  SPEAKER_01: By the end of this episode, you'll have a clear understanding of what could be coming in the autumn budget, how you could be affected, and the key things we should be watching for when it comes to protecting your financial future.
• 1:00
  SPEAKER_01: Before we begin though, please do remember to like and subscribe if you're watching on YouTube, or if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 1:11
  SPEAKER_01: Jack's here to break down all the speculation surrounding the autumn budget.
• 1:15
  SPEAKER_01: Let's get into it, shall we?
• 1:16
  SPEAKER_00: Good to be back, Jake.
• 1:17
  SPEAKER_01: Yeah, thanks for coming back on.
• 1:19
  SPEAKER_01: I do appreciate it.
• 1:20
  SPEAKER_01: I think let's start with the big question.
• 1:22
  SPEAKER_01: Why is this autumn budget so important for the people listening to this podcast?
• 1:27
  SPEAKER_00: It's a big one because we had the uh the budget last year when they made some some changes, let's say.
• 1:32
  SPEAKER_00: Subtle changes.
• 1:33
  SPEAKER_00: Some subtle changes, yeah.
• 1:35
  SPEAKER_00: Um, and nothing really has changed in the state of the UK economy.
• 1:39
  SPEAKER_00: So this one is set to be a bit a big one.
• 1:42
  SPEAKER_00: See Andy Burnham this time, as opposed to uh Starmer as Prime Minister.
• 1:46
  SPEAKER_00: So we've got a different Chancellor with Mr.
• 1:47
  SPEAKER_00: John Healy.
• 1:48
  SPEAKER_00: Um so it'll be his first one.
• 1:50
  SPEAKER_00: So I'll be intrigued to see what they come out with.
• 1:52
  SPEAKER_01: Yeah.
• 1:52
  SPEAKER_01: What what's putting the pressure, do you think, on Andy Burnham, John Healy, the whole Labour government ahead of the 28th of October, which is of course when the budget will be announced?
• 2:02
  SPEAKER_00: Higher inflation, yeah, higher borrowing costs.
• 2:04
  SPEAKER_00: I mean, energy costs towards the end of this year are set to go up another five percent.
• 2:09
  SPEAKER_00: Now that's gonna make a big difference to a lot of families around the world.
• 2:12
  SPEAKER_01: Do you think that the Labour are uh responsible entirely for this inflation and borrowing costs that you're talking about, or do you think maybe Conservatives contributed to it a little bit?
• 2:24
  SPEAKER_00: I mean it's very, very hard to say.
• 2:25
  SPEAKER_00: I think everyone's got a uh some sort of part in it.
• 2:29
  SPEAKER_00: I don't think it's necessarily one party.
• 2:31
  SPEAKER_00: I mean it's it's been the cost of living crisis has been around for for years anyway.
• 2:36
  SPEAKER_00: True.
• 2:36
  SPEAKER_00: Um, so I think it's uh a mixture of both.
• 2:39
  SPEAKER_01: And how much do we actually know at this stage and how much is just speculation?
• 2:44
  SPEAKER_00: I'd say a lot of it's speculation.
• 2:46
  SPEAKER_00: Yeah.
• 2:47
  SPEAKER_00: Um see we don't know until it's officially announced on Wednesday the 28th.
• 2:52
  SPEAKER_00: So there's a lot of changes that are up in the air, which could set to affect a lot of people if that does come to fruition.
• 2:59
  SPEAKER_01: Yeah, there's that weird middle ground, isn't there, where Andy Burnham and John Healy have both refused to rule out the fact that they're gonna raise taxes, but we can't actually say that they're gonna raise taxes, otherwise we'll get in trouble.
• 3:11
  SPEAKER_01: Doesn't really make any sense to me.
• 3:13
  SPEAKER_00: No, no, but the fact they're not ruling it out tells us what we need to know.
• 3:16
  SPEAKER_00: Exactly.
• 3:17
  SPEAKER_00: I mean, we've never ever come out of a budget and thought I'm paying less taxes.
• 3:20
  SPEAKER_00: Yeah.
• 3:21
  SPEAKER_00: Absolutely.
• 3:22
  SPEAKER_00: Not the case.
• 3:23
  SPEAKER_01: Yeah.
• 3:23
  SPEAKER_01: And our listeners are interested in keeping their finances in tip-top shape, obviously, but they may not be particularly interested in politics.
• 3:31
  SPEAKER_01: Why do you think those two things are very much linked?
• 3:36
  SPEAKER_00: Just because it's the way it's a day-to-day life that affects us.
• 3:39
  SPEAKER_00: So a lot of people might not be necessarily interested in the politics of the country, but it's how they're affected that's important, and obviously that goes hand in hand with politics and in terms of what they're potentially looking to change in the budget.
• 3:51
  SPEAKER_00: Yeah.
• 3:52
  SPEAKER_00: Um, so regardless of whether you're massively into your politics or you don't put on the news on because it's it's all doom and gloom, we're all going to be affected to a degree.
• 4:00
  SPEAKER_01: And what's the biggest thing you'll be watching for between now and the budget day, which is well, only 20 days away, isn't it?
• 4:07
  SPEAKER_01: Just more rumours.
• 4:08
  SPEAKER_00: But the interesting thing is there's less rumours this time than there was last year.
• 4:13
  SPEAKER_00: Last year we had loads of rumours of what could come out, and now there's less of them, and that definitely worries me more personally.
• 4:20
  SPEAKER_01: Let's dive into that then.
• 4:21
  SPEAKER_01: What do you think the biggest rumours are right now?
• 4:23
  SPEAKER_00: The biggest one for me, which will affect everyone that risks their money, is capital gains tax coming live income tax.
• 4:31
  SPEAKER_00: That's a massive one.
• 4:32
  SPEAKER_00: So essentially what that means, if you're a high-rate taxpayer, the government are gonna want 45% of any capital gain, so from you risking your money.
• 4:41
  SPEAKER_00: But a lot of our clients are seeing it as if I risk my money and don't do well out of it, I'm not getting subsidized in that situation.
• 4:49
  SPEAKER_00: So it's uh it's a big swing.
• 4:51
  SPEAKER_01: Yeah, do you think changes to capital gains tax could affect a lot more people than I guess they might initially expect?
• 4:58
  SPEAKER_00: 100%, because whether they bring that in terms of ISIS, um, in terms of stock market investments, it it affects a lot of people.
• 5:07
  SPEAKER_00: Anyone that goes out of the way to risk their money to get a better return will be affected.
• 5:12
  SPEAKER_00: That's that's a fact.
• 5:13
  SPEAKER_01: Yeah, that's true.
• 5:14
  SPEAKER_01: That's very true.
• 5:15
  SPEAKER_01: What are you hearing about this proposed high value property surcharge and who could potentially be caught out by it, do you think?
• 5:23
  SPEAKER_00: Yeah, so it'd be the people that have high value homes.
• 5:27
  SPEAKER_00: Now, I think the big massive misconception is that people that live in a million pound house or two million pound house have millions of pounds.
• 5:34
  SPEAKER_00: Yeah.
• 5:35
  SPEAKER_00: That's not the case.
• 5:36
  SPEAKER_00: A lot of people are asset rich, the ha their home is their only form of retirement, so to speak.
• 5:42
  SPEAKER_00: So, yes, you might have a nice house that you bought tens of years ago when it wasn't worth two million pounds.
• 5:47
  SPEAKER_00: Yeah.
• 5:47
  SPEAKER_00: Doesn't necessarily mean that you're a millionaire.
• 5:50
  SPEAKER_00: Yeah.
• 5:50
  SPEAKER_00: So all they're proposing is an additional cost on top of council tax.
• 5:54
  SPEAKER_00: It's brand it's bracketed to something like if your house is worth over two million quid, um, you have to pay an extra two and a half grand a year.
• 6:00
  SPEAKER_00: Yeah.
• 6:00
  SPEAKER_00: Um that that's like their their surcharge idea for what they perceive to be well off people when a lot of people are asset rich, don't have two million pounds in the bank.
• 6:09
  SPEAKER_00: Yeah, they've just got a nice home.
• 6:11
  SPEAKER_01: Yeah, that was maybe 50 grand about 30 years ago.
• 6:15
  SPEAKER_01: Exactly.
• 6:15
  SPEAKER_01: Yeah.
• 6:16
  SPEAKER_00: So I mean, the people that that have done really well out of properties that they live in as a home, yeah, they they're not millionaires.
• 6:22
  SPEAKER_00: They just bought a house at the right time, they've lived in it, and the property market's gone through the roof because banks are happy to lend money to to property to for people to buy properties.
• 6:31
  SPEAKER_00: Yeah, that's it's not I wouldn't necessarily say it's their fault.
• 6:34
  SPEAKER_01: Yeah.
• 6:35
  SPEAKER_01: Um in the same sort of bracket, legacy assets, etc., there's also concern around pension rules.
• 6:42
  SPEAKER_01: So, what would you say I guess experts are worried could change when it comes to people's pensions?
• 6:47
  SPEAKER_00: The big thing that stood out to me is the uh potential changes around salary sacrifice.
• 6:51
  SPEAKER_00: So if a company offers salary sacrifice, you can essentially sacrifice because we clues in clues in the name, a portion of your salary or bonuses or anything like that into your pension um to be more tax efficient.
• 7:03
  SPEAKER_00: Right.
• 7:04
  SPEAKER_00: Now they're looking at capping that at£2,000.
• 7:06
  SPEAKER_00: So that'll make a big change just because people won't be able to put more into their pension in a tax-efficient way.
• 7:12
  SPEAKER_01: Now, how much weight do you think people listening should give to the budget headlines that are in the media before anything is actually announced in a few weeks' time?
• 7:22
  SPEAKER_00: I mean, we saw last year a lot of the things that were speculated came to fruition.
• 7:27
  SPEAKER_00: They they did come to uh come to light.
• 7:29
  SPEAKER_00: Yeah.
• 7:29
  SPEAKER_00: So obviously nothing's guaranteed until we hear it from John Healy himself.
• 7:33
  SPEAKER_00: But there's always good indications of what's of what's to come, which is why people are trying to now be proactive as opposed to reactive um and get in before all these uh these tax changes are implemented.
• 7:44
  SPEAKER_01: Yeah.
• 7:45
  SPEAKER_01: Do you think changes to pensions could change the decisions we make about when and how we access our money?
• 7:51
  SPEAKER_00: Yes.
• 7:52
  SPEAKER_00: Uh make a big change because if you if there's less of a incentive to put money into your pension, I think less people do it in in as a simple answer.
• 8:00
  SPEAKER_01: So if you're just someone who's starting to build their wealth, could you actually be affected differently from someone who's already accumulated a lot in assets?
• 8:11
  SPEAKER_00: Short answer is is yes.
• 8:12
  SPEAKER_00: Yeah.
• 8:13
  SPEAKER_00: Just because the people that started accumulating money and assets um years ago, they wouldn't have had the the size of a tax liability that's set to set to come over the next few years.
• 8:23
  SPEAKER_00: Yeah.
• 8:24
  SPEAKER_00: Um so essentially it's just gonna be take longer to accumulate the same amount of money, just because you may have to give a an extra portion to the government in terms of uh uh uh taxation.
• 8:33
  SPEAKER_01: Very true.
• 8:34
  SPEAKER_01: So now we understand the main risks that we should look be looking for in the budget.
• 8:39
  SPEAKER_01: Where do you think, where would you say physical assets fit into the conversation about protecting and diversifying what you have?
• 8:45
  SPEAKER_00: Yeah, so physical assets and protection normally go hand in hand.
• 8:49
  SPEAKER_00: Yeah, something that's tangible, something you can move around with you, um, something that you can sort of touch fill just to mitigate third party risk.
• 8:56
  SPEAKER_00: So that's a big thing.
• 8:57
  SPEAKER_00: A lot of people now are coming away from numbers on screens just because I don't necessarily feel like their money is safe.
• 9:03
  SPEAKER_00: Yeah, um, and normally safety and and and something tangible goes hand in hand.
• 9:07
  SPEAKER_01: Definitely.
• 9:08
  SPEAKER_01: Where does gold fit into this?
• 9:10
  SPEAKER_01: What do you say?
• 9:11
  SPEAKER_00: Gold's tangible, you can take delivery of it.
• 9:13
  SPEAKER_00: We appreciate not everyone wants to do that, so we can store it.
• 9:16
  SPEAKER_00: Um, and if you buy a British coin, silver or gold, it's capital gains tax-free.
• 9:20
  SPEAKER_01: Right.
• 9:21
  SPEAKER_01: And silver?
• 9:22
  SPEAKER_00: Silver's great.
• 9:23
  SPEAKER_00: We're doing a uh a lot more silver at the moment because silver definitely has a place.
• 9:27
  SPEAKER_00: Um, obviously, you've got the uh the industrial demand as well as the precious metal demand.
• 9:31
  SPEAKER_00: Of course.
• 9:32
  SPEAKER_00: Um VAT free if kept in storage, and still capital gains tax-free if in the form of like a silver Britannia, yeah, for example.
• 9:39
  SPEAKER_01: So we have spoken about copper recently and how it could be a good alternative to other metals in the in the market.
• 9:47
  SPEAKER_01: Do you think that's relevant to today's conversation as well?
• 9:50
  SPEAKER_00: Yeah, to a degree, it all just stems from diversification.
• 9:53
  SPEAKER_00: Now, everyone knows diversification is is key.
• 9:57
  SPEAKER_00: And the amount of demand that comes from copper is uh copper and AI go uh are very much linked.
• 10:02
  SPEAKER_00: Yeah, because all these massive data centers that are popping up to process all of our chat GPT prompts and then propping up left, right, and centre.
• 10:10
  SPEAKER_00: And when you look at the influence copper has on electric cars, it's 28 million electric cars produced every year.
• 10:16
  SPEAKER_00: Yeah.
• 10:16
  SPEAKER_00: And every single one of them contains copper.
• 10:18
  SPEAKER_01: Yeah.
• 10:18
  SPEAKER_01: Well, uh there's silver in the cars as well, I think, but not quite as much, if I'm if I'm correct.
• 10:24
  SPEAKER_00: Yeah, so every uh electric car that's produced contains two ounces of silver.
• 10:28
  SPEAKER_00: So it doesn't sound like a lot.
• 10:29
  SPEAKER_01: No.
• 10:29
  SPEAKER_00: But when you think of how many they're producing, and I think we can both agree they're set to produce a lot more every single time.
• 10:35
  SPEAKER_00: Well, exactly.
• 10:36
  SPEAKER_01: How much is two ounces of silver right now?
• 10:37
  SPEAKER_01: About 90 quid?
• 10:39
  SPEAKER_00: Yeah, 90 quid.
• 10:40
  SPEAKER_00: Um, but then when you look at sil electric cars are propping up everywhere.
• 10:43
  SPEAKER_00: Uh I was driving down the motorway this morning and they're they are everywhere.
• 10:46
  SPEAKER_01: My brother's just got one actually.
• 10:48
  SPEAKER_00: Yeah, I think it makes sense though, because when the the fuel I'm gonna call I am gonna call it a fuel crisis now.
• 10:53
  SPEAKER_00: I don't think anyone else is ready to call it.
• 10:55
  SPEAKER_00: I'm gonna call it a fuel crisis because it's absolutely eye-watering.
• 10:58
  SPEAKER_01: Oh, it's terrible.
• 10:59
  SPEAKER_01: It's like£1.80 a litre now where I live.
• 11:01
  SPEAKER_00: Yeah, it's£205 for diesel.
• 11:03
  SPEAKER_00: Yeah, for diesel.
• 11:04
  SPEAKER_00: It's ridiculous.
• 11:05
  SPEAKER_00: And we read that one in ten people are skipping lunch at work to put fuel in their car.
• 11:10
  SPEAKER_01: Wow.
• 11:11
  SPEAKER_01: Wow, that's a very scary stat.
• 11:14
  SPEAKER_01: Horrifying.
• 11:15
  SPEAKER_01: Yeah.
• 11:15
  SPEAKER_01: We've spoken about diversity uh mostly today.
• 11:19
  SPEAKER_01: How important would because we're talking about gold, silver, and copper, how important would you say it is to avoid putting everything into one asset or one market or one currency or anything?
• 11:30
  SPEAKER_01: Diversification is important, would you right?
• 11:32
  SPEAKER_00: Yeah, just because there'll be peaks and troughs in any market, that's natural.
• 11:36
  SPEAKER_00: Anything that moves up in a straight line is never normally a country market.
• 11:39
  SPEAKER_00: I mean, uh diversification, it's just linked to being not being overexposed.
• 11:44
  SPEAKER_00: Yeah.
• 11:44
  SPEAKER_00: Because markets will always uh move differently.
• 11:47
  SPEAKER_00: Um that's why if you can uh hedge against that, why would you not?
• 11:52
  SPEAKER_01: Yeah.
• 11:52
  SPEAKER_01: Makes makes perfect sense.
• 11:54
  SPEAKER_01: And finally, if someone takes just one message away from this episode, what should they remember?
• 12:00
  SPEAKER_00: Tax efficiency.
• 12:01
  SPEAKER_00: Tax efficiency.
• 12:02
  SPEAKER_00: If you can be tax efficient in this day and age and grow your money in a safe way, I think that's we we're seeing that first hand.
• 12:09
  SPEAKER_00: We are busier than ever now.
• 12:11
  SPEAKER_00: Yeah.
• 12:11
  SPEAKER_00: Just with people trying to get in before the budget and something tax efficient, because this is essentially what is like the business end of the year for gold.
• 12:18
  SPEAKER_00: Yeah.
• 12:18
  SPEAKER_00: From September to December last year, gold went up 23%.
• 12:21
  SPEAKER_00: Yeah.
• 12:22
  SPEAKER_00: And when you think about what people are seeing in a savings account on a yearly basis, what is it, three and a half, four percent if you're lucky?
• 12:28
  SPEAKER_00: If you're lucky, yeah.
• 12:29
  SPEAKER_00: Inflation's at 3.1%, if you believe the figure they're telling us.
• 12:32
  SPEAKER_00: When you look at real-world inflation is probably about five percent, food shops are going through the roof.
• 12:37
  SPEAKER_00: Yeah.
• 12:37
  SPEAKER_00: The average£100 food shop is set to cost£150 by the end of the year.
• 12:41
  SPEAKER_01: By the end of the year, right?
• 12:42
  SPEAKER_00: And that's Christmas time.
• 12:43
  SPEAKER_01: Yeah.
• 12:44
  SPEAKER_00: So a lot of people are gonna be feeling the pinch with that.
• 12:46
  SPEAKER_00: And that's why it's more important than ever to protect your money.
• 12:49
  SPEAKER_00: And prototy and to protect your money, you have to grow it.
• 12:51
  SPEAKER_01: Yeah, and be as tax efficient as possible.
• 12:53
  SPEAKER_01: Exactly that, Jake.
• 12:54
  SPEAKER_01: Jack, thanks so much.
• 12:55
  SPEAKER_00: You're welcome.
• 12:56
  SPEAKER_00: Cheers.
• 12:57
  SPEAKER_01: So, the autumn budget could bring some important changes, but as we've discussed, there's still a lot we don't know.
• 13:04
  SPEAKER_01: What we do know though is that the financial pressures facing Britain are not going away.
• 13:09
  SPEAKER_01: And whatever decisions are made could eventually affect your savings, your pensions, your taxes, and the wealth that we're all trying to build.
• 13:17
  SPEAKER_01: The important thing is to understand what could change, who could be affected, and whether you're prepared for it.
• 13:23
  SPEAKER_01: And when you're thinking about your financial future, it's definitely worth looking beyond a single outcome.
• 13:28
  SPEAKER_01: Different assets can respond very differently to inflation, taxation, market uncertainty, and changes in the wider economy.
• 13:36
  SPEAKER_01: That's why understanding what you own, where your wealth is held, and how exposed you are to changes outside of your control is becoming increasingly important.
• 13:45
  SPEAKER_01: If you're worried about what the UK budget might do for your finances, you should request our guide at guide.directbullion.com.
• 13:53
  SPEAKER_01: This is where you can download our guide to tax-free gold.
• 13:56
  SPEAKER_01: It's packed with information, you definitely won't get anywhere else, and over 30,000 people have already requested a copy.
• 14:04
  SPEAKER_01: Also, if you've enjoyed today's episode, please do remember to like and subscribe if you're on YouTube, and if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 14:15
  SPEAKER_01: As always, leave a question in the comment sections below and we'll answer it in the next episode.
• 14:21
  SPEAKER_01: Thank you so much for listening to the Bullion Advances this week.
• 14:24
  SPEAKER_01: Stay informed, stay prepared, and most importantly, stay golden.
• 14:29
  SPEAKER_01: The purchase of gold does not constitute an investment or offer financial returns.
• 14:34
  SPEAKER_01: Gold is considered a store of value and not an investment product.
• 14:38
  SPEAKER_01: Past performance of gold is not indicative of future performance.
• 14:42
  SPEAKER_01: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 14:47
  SPEAKER_01: Direct bullion does not provide investment or tax advice and recommends that you conduct your own independent research before making any purchasing decisions.