Tax-Exempt Savings Plan

An affordable way to save a guaranteed tax-free cash sum for your future 

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What is a Tax-Exempt Savings Plan?

Saving for your future doesn’t have to cost much – you can choose between £10 a month, £15 a month or £25 a month.

You can choose how long you want to save for, between 10 and 25 years. Or if you’re saving for a special birthday, anniversary, dream holiday or a boost to your retirement fund you can select the exact date that you receive your tax-free lump sum! It’s a great way to build up savings over time.

Tax-Exempt Savings plans are only available through Friendly Societies (like us) and are an additional way to save tax-free on top of your ISA allowance.

Guaranteed
tax-free lump sum

Save from
£10 a month

Invest for
10 years+

Long-term
growth potential

How does our Tax-Exempt Savings Plan work?

You’re guaranteed to get a tax-free lump sum when your plan ends + we will pay out more than you have paid in (providing you’ve made all payments due)

It’s extra useful because it’s an additional tax-free allowance on top of your annual ISA allowance

Option to pay monthly or annually. Affordable monthly savings from just from £10

Your money is invested in our With-Profits fund for you. This provides the potential for extra returns. This depends on how the With-Profits fund performs, which means that the additional returns are not guaranteed especially in the early years.

Choose how long you want to save for between 10 and 25 years

Apply now

How much could you get back?

Use our calculator to find out your potential returns.

Savings Calculator

This calculator is only a guide and what you receive back will depend on the performance of our with-profits fund, meaning you could get back more or less than this. However, the guarantee that you get back more than you pay in protects your money as long as you pay all your monthly/annual payments for the plan’s chosen length.

Guaranteed Minimum Return*

£0

Potential Returns

Depending on the investment returns achieved in our with-profits fund, your total payout could be:

2%

£0

5%

£0

8%

£0

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*(this is the amount you are guaranteed to get back, as long as you pay into your plan each month/year for its chosen length, without any potential additional bonuses.

Who can take out a Tax-Exempt Savings Plan?

Our Tax-Exempt Savings Plan is available to all UK residents aged 16 and over.
Interested in taking out a Tax Exempt Savings Plan to save for your child's or grandchild’s future? Take a look at our Child Tax-Exempt Savings Plan.

This plan might be suitable for someone who:

  • Doesn’t currently hold a Tax-Exempt Savings Plan or has one and wants to use their full £25 a month (monthly payments)/£270 a year (yearly payments) maximum savings amount.
  • Wants to take advantage of a tax-efficient investment in addition to any ISA they may hold.
  • Expects to be able to maintain the payments for the full length of the plan, which will be your choice of between 10 and 25 years.
  • Would like to invest in a stocks and shares-related investment but is not prepared to take the risk of investing directly into the stock market.
  • Accepts the risks of investing in a With-Profits fund.
  • Doesn’t need the plan to provide life insurance.

This plan might NOT be suitable for someone who:

  • Already has a Tax-Exempt Savings Plan with a Friendly Society and is saving for the maximum limits (£25 a month (monthly payments)/£270 a year (yearly payments)).
  • Won’t be able to keep up the regular payments throughout the term.
  • Wants an investment which has no risks to capital or growth.
  • Wants life insurance with their savings plan.
Your Policy Explained
Key Information Document

Your questions answered

Our Tax-Exempt Savings Plan is available to all UK residents aged 16 and over.

Interested in taking out a Tax Exempt Savings Plan to save for your child's or grandchild’s future? Take a look at our Child Tax-Exempt Savings Plan.

Under current legislation each person (including children) can save up to a maximum of £25 a month or £270 a year in a Friendly Society tax free regular savings plan.

Each year we’ll send you a statement which shows your payments made and any bonuses which have been added from the with-profits fund performance.  In the weeks leading up to the end of your plan, we’ll send you an update on how much we expect it to be worth when it ends.

If you wish to find out the value of your policy, please contact our Customer Service Team on 0333 014 6244.

No, we’re afraid not. Tax-Exempt Savings Plans are a fixed savings plan, so withdrawals are not possible until the plan ends.

If you cash in the plan before your chosen end (maturity) date, you may get back less than you have paid in. Please see the key Information Document which provides further information.

We take deductions from the plan at 30% of your first year’s payments and 6% of payments in the following years. These deductions are for the cost of setting up and administering your plan. They will be reflected in the amount you get back when the policy reaches maturity, you cash it in early, or it’s closed because payments have stopped.

Even though these deductions are in place, you are guaranteed to get back more than you have paid in as long as you make all the payments due during the plan’s chosen length.

For further information on our charges please refer to our Key facts document.

If you pass away, we will refund all payments made into your Tax Exempt Savings Plan up to the date of death to your estate.

Our With-Profits fund invests in a mix of assets including property, equities, cash and UK government bonds. It aims to provide steady growth over the medium to long term by investing in a broad range of assets.

Any profits generated by the fund are used to add an annual bonus to your plan and possibly a final bonus when the plan reaches the end of its term. The addition of bonuses is not guaranteed, particularly in the early years.

If you would like to learn more about our with-profits fund, please visit the With-Profits Fund section of our Existing Members page. There you will find the relevant documents to help you understand what the fund is and how it works.

Any other questions?

If you need help or have any questions, please contact our friendly UK-based team today on 0333 014 6244 or request a call back.

We’re here from 8am to 6pm Monday to Friday excluding bank holidays.

Request a callback

How to apply

Apply online

Our easy online journey makes setting up a plan quick and straightforward.

Choose this option if you:

  • Want to arrange a plan straight away
  • Understand the plan fully and feel it's right for you
Apply now

Request a callback

Our friendly team can talk you through the plan to help you decide if it’s right for you.

Choose this option if you:

  • Would like to learn more about the Tax-Exempt Savings Plan
  • Have any questions you want to ask

0333 014 6244

Monday to Friday / 8am - 6pm

Important information

  • Inflation will mean any payout will have less buying power in the future.
  • You could get back less than you have paid in if you end the policy early.
  • If you cancel your policy in the first year, outside of the 30-day cancellation period, you will get nothing back.
  • If you end the policy before the term you choose, you may well get back less than you invested, but also any gain you make could be taxable.
Apply now
Existing Members
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