Our Tax Free Flexible Plan

Tax-free in addition to your ISA allowance

Want to pay less tax on your savings and investments? Like the freedom to be able to cash in your investment plan early, should you choose to? Tax-Free Flexible Plan could be the investment plan for you.

The friendly, flexible tax-free investment

You may have heard of tax-free savings plans, such as ISAs. But if you’re a UK resident, aged between 16 and 64, you can also put up to £25 per month in tax-free investment plans with a friendly society, like Scottish Friendly. That’s over and above your ISA allowance.

With the Tax-Free Flexible Plan from Scottish Friendly, you don’t pay tax on the growth of your investment (although like with ISAs and pensions, tax is automatically deducted from UK share dividends). You won’t pay tax if you cash in your plan either, as long as you keep it for 10 years or more. Please note that tax treatment depends on your individual circumstances and tax law may change in the future.

When you start your Tax-Free Flexible Plan, you invest for a maximum of 15 years. This gives your investment plan long-term growth potential as well as a tax-free lump sum.

So what happens if you need your money earlier than planned? That’s no problem.

With the Tax-Free Flexible Plan, you’re free to take your money out whenever you like. Bear in mind though that if you do cash in your investment plan before 10 years, there will be a £50 deduction from your cash in value before it is paid to you and you may have to pay tax on any profits you make. For full details, please see Key Features (PDF).

Put a little away for a rainy – or sunny – day

Whether you’d simply like a financial cushion or fancy seeing the world one day, our Tax-Free Flexible Plan may appeal if you want to start putting money away regularly.

Each month, you decide how much you’d like to invest. The minimum is £15 and the tax-free limit is £25 per month. This is set by the government and is known as your tax-exempt savings allowance. As long as you haven’t used up this allowance either with us, or another friendly society, you’re able to invest in the Tax-Free Flexible Plan.

Putting money aside in your investment plan could quickly become a habit. If you choose to pay money into your Tax-Free Flexible Plan by Direct Debit, you decide which day the money leaves your account. Make it pay day and there’s a good chance you’ll hardly notice it’s gone.

Investing in British household names

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 well-known UK companies 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. What’s more, we regularly reinvest annual dividends 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 so you’re not guaranteed to get back the money you paid in originally.

Relax, life cover comes as standard

It’s good to know that should the worst happen to you, your loved ones will be looked after financially.

With the Tax-Free Flexible Plan, you only pay a small cost for the life cover that’s automatically included. The exact level of cover and any deductions you’ll pay towards the cost of the cover depend on your age and the monthly payments you make in to the investment plan. You should consider if this is appropriate for your financial needs.

No matter what life brings in the future, with the Tax-Free Flexible Plan you can relax a little more now.

Apply online securely now

It’s quick, safe and easy to apply for the Tax-Free Flexible Plan with Scottish Friendly.
First, please make sure you have read and understood the Key Features (PDF) for this investment plan.
If you do apply online, it’s a good idea to print or save a copy of this page, any other relevant pages and the Key Features (PDF). That way, you can refer back to them at any time.

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.