Did you know the government gives you a tax exempt savings allowance in addition to your ISA allowance? If you’re a UK resident aged between 16 and 74 you can save £25 a month into a plan like Vision.
You can also take out a plan for any child under the age of 16. More information on the Vision Tax Exempt Savings Plan for Children.
Tax exempt savings plans are only available from friendly societies. Vision Tax Exempt Savings Plan is provided by Engage Mutual Assurance, one of the UK’s leading mutual friendly societies.
The underlying value of any investment may fall as well as rise.
If you’re interested in saving for your family’s future, Vision could be just what you’re looking for. Perhaps you’re thinking about savings towards university fees or a deposit for your child’s first home. Or, after 10 years, you could use the lump sum to help you buy a new car or improve your own home.
Vision isn’t a normal savings plan, it offers you tax exempt savings. You can save £25 a month this way. And it’s great for children’s savings as well.
The Tax treatment of the Vision TESP may change in the future.
There are a few important things to bear in mind about the guarantee. You’ll get a guaranteed minimum tax free lump sum as long as you’ve paid all the premiums due, the plan has reached the end of the premium payment term and you cash your plan within 28 days after the end of the payment term.
It’s also important to be aware that if you close your plan outside of the guarantee period, you could get back less than you paid in, and if you cash in before you pay 1 year’s premiums you won’t get anything at all. Remember, the tax treatment of the plan could change in the future.
Fees and charges apply and are detailed in Important Information. 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.
So, if you’re a UK resident aged 16 to 74 you can shelter some of your savings from tax - and enjoy a tax free cash lump sum when your plan matures.
Remember, inflation will reduce the buying power of the lump sum and affect what can be bought in the future. You should also be aware that the tax treatment of the plan could change in the future.
Your tax-exempt friendly society savings allowance is in addition to your ISA allowance – so you can save into both plans.
You can save £25 a month for 10 years.
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.
Any bonuses are added to your 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 you’ve paid all the premiums due, you’ll have 28 days after the end of the premium payment term in which to cash in your plan and ensure you get back at least what you’ve paid in. We’ll write to you to let you know this date is coming up and what other options might be available.
If you cash in your policy outside of the guarantee period, you may get back less than you paid in.
Yes, the plan includes life cover, and there’s no need for a medical. If the worst should happen, the plan will pay out a lump sum.
No, the total savings amount for friendly society tax exempt savings plans held by you with Engage or any other friendly society, cannot exceed £25 per month.
No, Vision Tax Exempt Savings Plan is for regular savings only.
The charges Engage make may increase.
No, there are no early closure penalties. However please note:
It’s also important to be aware that if you close your plan outside of the guarantee period, you could get back less than you paid in.
No, your monthly payments can only be made by Direct Debit.
There are three ways to apply:
You can only apply online if payments will be made from an account in your name.
Call us on 0800 130 0132
Lines are open 8am-8pm Monday to Friday and 9am-4pm on Saturdays.
Find your nearest branch.
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.
Vision Tax Exempt Savings Plan is provided by Engage Mutual Assurance, Hornbeam Park Avenue, Harrogate HG2 8XE. Tel: 01423 855000 Fax: 01423 855181
Clydesdale Bank PLC is authorised and regulated by the Financial Services Authority. (FSA Register No 121873). Registered in Scotland No. SC001111. Registered Office: 30 St Vincent Place, Glasgow G1 2HL. A member of the National Australia Bank Group of companies.
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 by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority. HFSL’s Financial Services Register number is 110072. You can check this on the Financial Services Register at www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 111 6768.