The Children's Tax Exempt Plan invest 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 is available for all children under 16. The parent or guardian will control the plan until the child reaches the age of 18. The payer's permission will be required if the plan is to be encashed before the end of the payment term. After this time the child's signature will be required on documents.

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 recipients 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 individual circumstances and the tax treatment of this product may change in the future.

Please note that if your child was born on or after 1 September 2002 then they may be eligible for the Child Trust Fund - Click here for details.

Because of the tax-exempt nature of the product, the government limits the amount that anyone may invest in children’s 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 for your child, they will not be eligible to take a POIS Children's Tax Exempt Savings Plan.

Please note that to retain their tax-exempt status children's Tax Exempt Savings Plans are required to run for a minimum ten-year term.