Our Tax Free Flexible Plan
Tax-free in addition to your ISA
Tax-free in addition to your ISA allowance
Tax-Free Flexible Plan is a 15 to 18 year investment plan for adults, but with the option to exit your investment plan earlier than your chosen term. It aims to give your investment plan long-term growth potential plus a tax-free lump sum after 10 years. The table below provides a brief summary of the plan and you can find more information on the Tax Free Flexible Plan by visiting the in detail tab.
| i Your Tax-Free Flexible Plan | i Things you should consider |
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No advice has been provided by Scottish Friendly in relation to this plan. If you are in any doubt as to whether this plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.
Tax-free in addition to your ISA allowance
Want to pay less tax on your savings and investments? Tax-Free Flexible Plan could be the investment plan for you.
Tax-free investment plans in addition to your ISA
The Tax-Free Flexible Plan is an investment plan for UK residents, aged between 16 and 64. If you’re in that group, you’re allowed to put up to £25 per month tax-free in investment plans with a friendly society such as Scottish Friendly. This is over and above other tax-free allowances such as ISAs.
With Tax-Free Flexible Plan you don’t pay tax on the growth of your investment (although like ISAs and pensions, tax is automatically deducted from UK share dividends). And there’s no tax to pay if you cash in your plan after 10 years. Please note that tax treatment depends on your individual circumstances and the levels and basis of taxation may change in the future.
When you start your Tax-Free Flexible Plan you choose to invest for 15 to 18 years. This gives your investment plan long-term growth potential plus a tax-free lump sum. But you can of course exit your investment plan earlier, just as you see fit.
If you need your money earlier than planned, no problem. You have the flexibility to take your money out whenever you need to. With Tax-Free Flexible Plan you won’t get penalised by us if you need to take your money out of the investment plan earlier, because we don’t charge you for an early payout. However, you may have to pay tax on profits if you cash in your investment plan before 10 years. For details, please see Key Features.
Start a regular savings and investment habit
Tax-Free Flexible Plan may also tickle your fancy if you want to start a regular savings and investment habit.
It doesn’t matter what you need the money from your Tax-Free Flexible Plan for in the future. For a child, family or yourself. Whatever life brings you. You decide when the time is ripe.
Meanwhile, you put away a small amount every month in your investment plan. That’s the regular bit. How much depends on you. The minimum is £15 and the tax-free limit is £25 per month. This limit is set by the Government. As long as you haven’t used up your tax exempt savings allowance either with us, or another friendly society you can invest in Tax-Free Flexible Plan.
Putting money aside in your investment plan could quickly become a habit. When you set up paying into your Tax-Free Flexible Plan by Direct Debit, you choose the day the money leaves your account. Make it payday and you may hardly notice the payment.
About growth and risks
Your Tax-Free Flexible Plan money is invested in the Scottish Friendly UK Tracker Fund. The fund closely tracks the performance of shares in the stock market, investing in British household names such as Tesco, BSkyB and BT.
We regularly review our funds and what they’re tracking. So hopefully, as the value of the funds rise, your investment can grow. Plus, annual dividends are reinvested in the fund to bolster the long-term growth of your plan. Of course, as you know, share prices go down as well as up and you’re not guaranteed to get back your original investment.
With us, you only pay a small cost for the life cover that’s automatically included.
An investment plan with life cover
Should the worst happen to you while you’re in Tax-Free Flexible Plan, we cannot console your loved ones, but at least they’ll have some financial comfort.
With Tax-Free Flexible Plan you get life cover. The level of cover and any deductions for the cost of cover depend on your age and monthly payments in Tax-Free Flexible Plan.
So no matter what life throws at you, with Tax-Free Flexible Plan you can relax a bit more.
Get your Tax-Free Flexible Plan
Submitting your application for Tax-Free Flexible Plan with Scottish Friendly is safe and easy.
Make sure you have read and understood the Key Features for this investment plan then simply apply online for your investment plan.
If you apply, we suggest printing or saving a copy of this page, other relevant pages and the Key Features.
How your money could grow
It’s impossible to tell you the exact return you may get in the future but we can give you a rough idea. Take a look at what you might get back if you start a Flexible Plan with Scottish Friendly.
Projected returns on £25 per month invested over 18 years*
Projected returns for illustration only. Remember your original investment is not guaranteed and you could get back less than the amounts shown.
Investing in the stock market is not without its risks because shares can rise and fall and you could get back less than you've paid in.
Source: Scottish Friendly. Based on someone aged 30 at outset investing £25 per month. *Total amount invested £5,400. These figures are only examples and are not guaranteed. They are based on premiums being paid for the full 18 years. They are not minimum or maximum amounts. What you get back depends on how your investment grows and on the tax treatment of the investment. You could get back more or less than the figures projected above and the total amount invested. The annual rates of growth for the illustration have been based on our reasonable estimate of potential returns and are the maximum projection rates permissible by the Financial Services Authority. All the figures include the deduction of the actual charges assumed on the plan. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. (For more details on the effect of charges on your plan, please see the Key Features).