Children’s Tax Exempt Plan
Give your child a
Head start in life
Your child or grandchild deserves the best of everything, don’t you agree? And that includes being given an amazing start in life. Our simple and honest Children’s Tax Exempt Plan can help you provide a cash sum for them when they need it the most. It will mean the world to them – and you would have made it all possible.
£25 a month
for 10 – 25 years
return for your
0 to 15
This affordable plan offers a tax free cash sum when they need it most. Imagine helping them pay towards their university fees, helping to fund a trip around the world or even helping towards the deposit on a first home.
By opening a Children’s Tax Exempt Plan, you will feel great knowing what an important contribution you will be able to make to their early adult years. Priceless!
A little thank you, just for you!
We’re delighted you’re thinking about taking out a POIS Children’s Tax Exempt Plan. As a thank you, once three monthly premiums have been received, we’ll send you a £20 M&S Gift Card.
Why choose the Children’s Tax Exempt Plan?
At £25 per month, it is an affordable way to save for your child’s future.
Available for children aged 0 to 15 so that you can start saving for them when it suits you. But don’t worry if you have a child over 16. We offer an adult Tax Exempt Savings Plan as well.
Can be held alongside a Junior ISA or Child Trust Fund so it provides you with more ways to save tax-efficiently for your children.
Your £25 per month contributions are invested in our Flexible Growth Fund for potential growth over the longer term.
You choose how long you want to save for, from 10 to 25 years. Your child must be at least 16 years old to receive the cash sum.
As a POIS member, your child or grandchild will have access to membership benefits including discretionary grants to help cover the cost of things like higher education and healthcare costs
How would you describe POIS to someone who had never heard of them before?
“A good way to save money. You can have more than one policy and it is very affordable”
See how much you could save
A real-life example
A £25 per month Children’s Tax Exempt Plan which commenced in November 2008 with a 10 year term provided a payout of £3,969.86 at maturity. This is an average annual return of 5.4% and a total return of 32.3%, after administration fees and charges.
The above graph is provided for information purposes. Past performance should not be seen as a reliable indicator of future results. The value of holdings within the fund can fall as well as rise, and you could get back less than you have paid into the plan. As the fund holds overseas assets, the Sterling value of these assets may rise and fall as a result of exchange rate fluctuations.
Ready to start saving for your child’s future? Apply today!
Investing in the POIS Flexible Growth Fund
The POIS tax exempt plans invest in our Flexible Growth Fund. This is an actively managed fund with the aim of achieving long term growth, while spreading risk across a wide range of investments. It invests mainly in shares, both UK and overseas, along with fixed interest investments such as Government gilts and property.
When you invest with us your money buys units or shares in a fund and the units in each fund have a daily value which can be used to work out the current overall value of your plan.
To work out the value of your plan simply take the number of units your plan currently holds, and multiply this number by the current Unit Price for that plan.
POIS Flexible Growth Fund
Tax Exempt Saving Plan Children’s Tax Exempt Plan
Unit Price (pence):
Change from previous day:
Added value for your child – Member Benefits
Taking out a Children’s Tax Exempt Plan is only the start. By doing so, your child will become part of the POIS family which is now a part of Foresters Friendly Society, a well-established UK friendly society. This means they can enjoy some wonderful, unique benefits such as discretionary grants to help with higher education costs when the time comes and to support life’s ups and downs. In 2018, we gave back over £1.1million to our POIS and Foresters members in the form of discretionary grants.
Can anyone take out a Children’s Tax Exempt Plan?
Yes anyone can open a Children’s Tax Exempt Plan on behalf of a child. If you are not the child’s parent or guardian, we’ll ask you to confirm that they agree to you setting up the plan. We will then send the plan documents to them so you will need to provide their details as part of the application process.
If the person paying into the plan isn’t the parent or guardian, they’ll receive a copy of the Direct Debit agreement to show they are paying the contributions. They’ll also receive the right to cancel pack in the first 30 days.
Can I open more than one Children’s Tax Exempt Plan for my child?
Under current legislation each person (including children) can save up to £25 a month in a Friendly Society tax free regular savings plan. Therefore, as the monthly contribution for our Children’s Tax Exempt Plan is £25, the child cannot hold more than one tax exempt plan with POIS or any other Friendly Society.
However, if you want to save more than £25 a month, you could consider opening a Junior ISA.
What is life cover?
This plan includes life cover at no additional cost, meaning that if your child passes away before the plan ends then their estate will receive a cash payout. You won’t have to answer any medical questions when applying for the plan making it simple for you to take out but you will benefit from this type of cover.
Until the child reaches the age of 10, the life cover will be the return of the monthly contributions that have been paid into the plan. After they turn 10, the life cover is calculated at 75% of the total contributions you are due to make over the plan’s full term which you choose when you open it.
In both cases, the life cover is available as long as monthly contributions continue to be paid. If the value of the plan is higher than the life cover, the plan value will be paid to the estate.
How do I pay into the plan?
With ease! Your £25 per month contribution will be paid by Direct Debit straight from your bank account. When you apply, you will provide your bank details and we will set the Direct Debit up for you, you don’t need to do a thing.
Your contributions will be collected each month. It is not possible to make a lump sum payment into the POIS Children’s Tax Exempt Plan, if you wish to invest a lump sum you can consider other plans we offer such as the Junior ISA or Stocks & Shares ISA which accept lump sum payments by card, bank transfer or online secure payments.
Where is my money invested?
The monthly contributions you make will purchase units in the POIS Flexible Growth Fund. The aim of the fund is to achieve long term growth, while spreading risk across a wide range of investments. It invests in UK and overseas shares, along with UK Convertible Bonds. It is an actively managed fund which means our expert fund managers make decisions about how to invest the fund’s money as opposed to the fund just following a market index.
The value of holdings within the fund can fall as well as rise, and you could get back less than you have paid into the plan. As the fund holds overseas assets, the Sterling value of these assets may rise and fall as a result of exchange rate fluctuations.
For more information about the fund see our Fund Information.
Are there any charges?
As with any investment, there are costs in managing the plan on your child’s behalf. These include an annual management charge and a monthly administration charge which are deducted from the value of their plan.
What happens if I stop paying?
We would encourage you to keep up your monthly contributions for the plan’s full duration.
If you stop making contributions, the life cover will end, so, if your child passes away, the payment returned to their estate will be the value of the plan.
If you miss some monthly contributions into the plan, you have 13 months to pay the missing contributions, altogether in one lump sum, and continue paying into the plan. If, at the end of the 13 months, you have not made up the missing contributions there will be various scenarios that could apply. Please see the Important Information document for further details.
What happens if the plan is cashed in early?
This is a mid-long term savings plan so you should aim to keep the plan open for the length of time you choose when you open it. That said, we appreciate that personal circumstances can change. So, if you do need to cash the plan in early you should read the Important Information document to see what charges may apply.
Your child cannot cash in this plan until they reach the age of 16. The payout will be paid to your child at all times, as the plan is for their sole benefit.
What happens if I pass away?
If you were to pass away whilst you are paying contributions on behalf of a child, someone else can take on the responsibility of continuing payments into the plan for the remainder of its term.
If there isn’t anyone to continue the monthly Direct Debit, the plan can either be cashed-in or stopped. Please see the Important Information document for further details. Some charges may apply.
What happens when my child’s plan reaches maturity?
We’ll send the child a maturity information pack a little while before their plan is due to mature. This will advise how much the cash lump sum payment will be, and will detail the information we’ll require so we can transfer the money to them. If the maturity date is close to the child’s 16th birthday, the maturity information pack may be sent to the parent/guardian.
When the plan matures all of the money saved and all investment returns less charges will be paid directly to your child. So that we can do this, your child will need a bank account set up in their name.
I’m not sure if the Children’s Tax Exempt Plan is right for me. What should I do?
If you’re unsure as to the suitability of this plan, you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.
We’re here if you need help or have any questions
If you have any questions that we have not yet covered or just want to talk your application through, please give us a call. Our friendly UK based team are on hand to make things as easy as possible (lines are open Monday to Friday 9 am to 5 pm).