Tax-Free & Friendly UK Select Investment Plan
A tax-free and tax paid investment
Tax-free & Friendly UK Select Investment Plan is a 10 year plan. It is designed to let you make regular tax-free and tax paid investments in a stockmarket related product, with two UK fund options to choose from. The table below provides the at a glance detail and things you should consider. For more information on Tax-free & Friendly UK Select Investment Plan please visit the in detail tab.
| i Your UK Select Investment 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.
A tax-free and tax paid investment
If you are a UK resident aged between 16 and 64, Tax-Free & Friendly UK Select Investment Plan is a 10 year investment that helps you take full advantage of your tax-free allowance. You’re allowed to invest up to £25 per month tax-free with a friendly society such as Scottish Friendly. This is a limit set by the Government and it is over and above tax allowances such as ISAs.
With Tax-Free & Friendly UK Select Investment Plan you can invest as much as you like. The first £25 per month goes into a tax-free plan. You don’t pay tax on the growth of that money (other than tax on dividends from UK shares). The rest of your payment goes into a tax-paid plan, where we deduct the tax from the growth.
So there’s no tax to pay when you cash in your Tax-Free & Friendly UK Select Investment Plan after 10 years. Please note that tax treatment depends on your individual circumstances and tax regulation is subject to future change. The fund you invest in receives UK dividend income net of corporation tax.
If you’ve already used your extra £25 per month tax allowance, you could benefit from our Tax Friendly UK Select Investment Plan.
Start a regular investment habit
You can put away as little as £15 per month in Tax-Free & Friendly UK Select Investment Plan.
Putting money aside could quickly become a habit. When you set up paying into your Tax-Free & Friendly UK Select Investment Plan by Direct Debit you may hardly notice the payment.
You decide where your money is invested
The Tax-Free & Friendly UK Select Investment Plan is designed to help your money grow by using the long-term potential of the stock market. You can choose where your Tax-Free & Friendly UK Select Investment Plan is invested. You can invest in the Scottish Friendly UK Tracker Fund or the Scottish Friendly UK Active Growth Fund.
The UK Tracker Fund tracks the UK stock market. It has shares in British household names such as Tesco, BSkyB and BT. Some UK tracker funds track as few as 50 companies, others track over 600. Your money will rise and fall with the movement of the stock market index and charges on the fund.
However we recognise that some investors prefer to take a little more risk. That's why we also give you the chance to invest in our UK Active Growth Fund, which aims to outperform the stock market. A team of professional fund managers aim to spread risk by buying shares. They will only buy shares in the companies they believe can outperform the market. Their goal is to provide a superior return than the tracker fund but there is no guarantee that they will.
Both funds aim to let you enjoy the potential benefits of capital growth on shares plus any dividend income. These are automatically reinvested in the fund to improve long-term growth potential. Please note that you can only choose to invest in one of the two funds. Remember share prices go down as well as up and you’re not guaranteed to get back your original investment.
With Tax-Free & Friendly UK Select Investment Plan you also get life insurance. The level of cover depends on your age and payments into your plan. You should consider if this is appropriate for your financial needs.
How your investment could grow
Projected returns on £40 per month invested over 10 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 next birthday at outset investing £40 a month over 10 years. *Total amount invested £4,800. Figures shown are based on £25 per month invested tax-free and £15 per month invested tax paid. Based on current tax law which may change.
| Illustrated growth rates used for: |
Lower rate | Middle rate | Higher rate |
|---|---|---|---|
| Tax-free part of investment | 5% p.a. | 7% p.a. | 9% p.a. |
| Tax paid part of investment | 4% p.a. | 6% p.a. | 8% p.a. |
These figures are only examples and the projected benefits are not guaranteed. They are based on premiums being paid for the full 10 years. They are not maximum or minimum amounts; what you get back depends on how your investments grow. You could get back more or less than this. 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).
Get your Tax-Free & Friendly UK Select Investment Plan
Starting a Tax-Free & Friendly UK Select Investment Plan with Scottish Friendly is easy.
Make sure you have read and understood the Key Features before you apply. Then you’re ready to:
- Apply online;
- Or download an application form and post it to:
Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR.
If you apply, we suggest printing or saving a copy of this page, other relevant pages and the Key Features.
The Scottish Friendly UK Tracker Fund is currently linked to the Legal & General UK Index Trust, a UK authorised unit trust.
The Legal & General UK Index Trust
The investment objective of this Trust is to track the capital performance of the UK stock market by investment in a representative sample of stocks selected from all economic sectors.
Stocks in the UK stock market will be held with weightings generally proportionate to their company’s market capitalisation.
Legal & General Investment Management (LGIM) offers a range of unit trusts managed on what is known as an ‘index-tracking’ basis. The aim is to track the performance of a stated stock market index in a single investment.
As one of the earliest index-tracking managers in the UK, LGIM understands that successful index tracking strikes a balance between close matching of the index and the management of trading costs. Their experience and expertise in this form of management means that they have become one of the UK’s largest fund managers owning around 5% of the main UK stock market.
Please note that Scottish Friendly reserve the right to change the fund which the Scottish Friendly UK Tracker Fund links to if they believe it to be in the investor’s interest. Should such a change take place these pages will be updated with the details of the new fund link.
The Scottish Friendly UK Active Growth Fund is currently linked to the Scottish Friendly UK Growth Fund. This is an OEIC fund from Scottish Friendly Asset Management where the asset management of the fund is currently outsourced to an external fund manager; SVM Asset Management. Details on the fund and the external fund manager are detailed below.
The Scottish Friendly UK Growth Fund
The UK Growth Fund gives you potential for growth from a carefully selected portfolio of leading blue-chip companies. It invests solely in UK equities, although a proportion may also be held in cash. This is a medium-risk fund which aims to outperform the stock market.
SVM Asset Management
Scottish Friendly's OEIC funds are currently managed by SVM Asset Management which is based in Edinburgh and headed by Colin McLean, one of the UK's best-known fund managers.
SVM was established in 1990 as a specialist manager of European and UK equity portfolios. Since then they have created an unparalleled performance reputation - managing investments for a number of FTSE 100 company pension schemes and other leading life and investment organisations.
Each of SVM's team has on average 15 years' experience. Colin McLean's own investment experience stretches back over 30 years, and he is widely regarded as one of the UK's top stock pickers. He is also a regular market commentator in the national press. Past performance is not a guide to future performance.
Please note that Scottish Friendly reserve the right to change the fund which the Scottish Friendly UK Active Growth Fund links to if they believe it to be in the investor's interest. Should such a change take place these pages will be updated with the details of the new fund link. Similarly Scottish Friendly Asset Management reserves the right to alter the selection of the external manager if they believe this to be in the investor's interest.
