Could your child use a tax exempt lump sum ten years from now?
A Vision Tax Exempt Savings Plan for Children lets you save £25 a month tax exempt for any child under the age of 16 who is a UK resident.
Tax exempt savings plans are only available from friendly societies. Vision Tax Exempt Savings Plan for Children is provided by Engage Mutual Assurance, one of the UK’s leading mutual friendly societies.
Adults can save with a Vision Tax Exempt Savings Plan as well.
You know how quickly they grow - and the sooner you start saving, the sooner your child’s plan will have the potential to grow with them.
You can save £25 a month on behalf of a child in our Vision Tax Exempt Savings Plan for Children. The minimum term of the plan is 10 years. It can also be taken out to mature when the child reaches age 18 or 21, so long as it runs for at least 10 years.
The plan is taken out by a parent or legal guardian on behalf of the child. When the child reaches age 16, the ownership of the plan passes to them.
We recommend that you read the Important Information in the next Tab.
It’s a friendly society tax exempt savings policy. This means that there’s no tax on any growth in your plan. In addition, the lump sum that’s paid out at the end is tax free.
It’s available for children under 16 who are UK residents. So you can shelter some savings for them from tax - and they can enjoy a tax free cash lump sum when the plan matures.
Remember, inflation will reduce the buying power of the lump sum and affect what can be bought in the future. The tax treatment of the plan could change in the future.
You can save £25 a month. Payments must be made by Direct Debit.
Yes, your child’s tax exempt savings allowance is in addition to the Child Trust Fund allowance – so you can save into both plans.
The money is invested in the Engage Mutual With Profits Sub Fund. This invests in a mix of assets such as shares, commodities, property, currency, cash and other structured investments. The Sub Fund may also invest directly in fixed interest securities. The underlying value of any investment may fall as well as rise.
The plan doesn’t pay interest. What the child gets back depends on the performance of the underlying investments held in the fund. Investment performance cannot be guaranteed.
Any bonuses are added to the plan and these gradually increase the value of the plan. A final bonus may be added when the plan is cashed in. You should bear in mind that future bonuses depend on investment performance and are not guaranteed.
If all the premiums due have been paid, there are 28 days in which to cash in the plan to ensure your child will get back at least what has been paid in.
If the child will be under 16 at the end of the term, we’ll write to the parent or guardian to tell them what options are available. If the child will be 16 or over at the end of the term, we’ll send the information to them.
If the policy is cashed in outside of the guarantee period the child may get back less than has been invested.
No, Vision Tax Exempt Savings Plan for Children is for regular savings only.
The charges Engage make may increase.
No, there are no early closure penalties. However please note:
No, your monthly payments can only be made by Direct Debit.
Yes. You don’t have to be the parent or guardian to pay the premiums.
Once the child reaches age 16, control of the plan will revert to the child and any letters, statements or other communications will be addressed to them.
No, the total savings amount for friendly society tax exempt savings plans held by your child with Engage or any other friendly society, cannot exceed £25 per month.
Key Features of Vision Tax Exempt Savings Plan for Children (pdf – opens in new window)
Policy Conditions of Vision Tax Exempt Savings Plan (pdf – opens in new window)
Key Facts of Vision Tax Exempt Savings Plan (pdf – opens in new window)
Consumer Friendly PPFM (pdf – opens in new window) (pdf – opens in new window)
There are three ways to apply:
Call us on 0800 130 0132
Lines are open 8am-8pm Monday to Friday and 9am-4pm on Saturdays.
Find your nearest branch.
The Tax treatment of the Vision TESP may change in the future.
Clydesdale Bank acts as an introducer for the Vision Tax Exempt Savings Plan, provided by Engage Mutual Assurance.
For your security, calls may be monitored or recorded.
The Vision Tax Exempt Savings Plan for Children is only available to children aged 0 - 15 years inclusive.
The underlying value of any investment may fall as well as rise.
Clydesdale Bank PLC is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. You may be entitled to compensation from the Scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.
In respect of insurances and insurance advice and arranging covered by the Scheme, payments are limited to 90% of the claim with no upper limit. For compulsory insurances 100% of the claim is covered by the Scheme with no upper limit. Further details of the Scheme are available from us on request or from the Financial Services Compensation Scheme: http://www.fscs.org.uk/ (opens in new window) or Financial Services Compensation Scheme, 7th Floor, Lloyds Chambers, Portsoken Street, London, E1 8BN.
Vision Tax Exempt Savings Plan for Children is provided by Engage Mutual Assurance, Hornbeam Park Avenue, Harrogate, HG2 8XE tel: 01423 855000.
Engage Mutual Assurance is a trading name of Homeowners Friendly Society Limited (HFSL), Registered and Incorporated under the Friendly Societies Act 1992, Reg. No.964F. Authorised and regulated by the Financial Services Authority (FSA). HFSL’s FSA Registration number is 110072. You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234.