The Tax Exempt Savings Plan invests in stocks and shares, so it has good growth potential, although its value can fall as well as rise, so it is possible to get back less than was paid in. The plan provides life cover in the event of death and is available to everyone aged between 16 and 75.

The plan invests in a tax-exempt fund, although dividends will have been taxed at source. The proceeds on encashment after ten years will be free of any personal tax liability (i.e. there will be no income or capital gains tax) whatever the recipient’s marginal rate of income tax. The information provided is based on the Society's understanding of current legislation. Please remember the tax advantages depend on your individual circumstances and the tax treatment of this product may change in the future.

Because of the tax-exempt nature of the product, the government limits the amount that anyone may invest in Tax Exempt Savings Plans. The tax-exempt allowance is set at £25 a month, and this is unique to Friendly Societies. Therefore if you are already investing into a tax-exempt friendly society savings plan you will not be eligible to take a POIS Tax Exempt Savings Plan.

Please note that to retain their tax-exempt status Tax Exempt Savings Plans are required to run for a minimum ten-year term. At the end of this time you may wish to continue investing, or stop paying premiums but keep the plan invested in the funds or to take the value of your policy as a cash lump sum.