Main Product Features
The Red Rose Friendly Society Tax Exempt Plan allows you to save as little as £10 per month for 10 to 30 years. And as an incentive to save, the government allow premiums of up to £25 per month to be invested in a fund which receives special tax exempt status, resulting in a higher return from the policy. This allowance is in addition to your ISA allowance.
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Tax free
The return at maturity (or on death during the term) is free of any personal taxation.
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With-profits Fund
Your investment is in our with-profits fund. This is a mixture of equities, gilts, corporate bonds, property and cash. It is important to remember that as a ‘mutual’ we have no shareholders. This means that ALL of our profits belong to our members.
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Bonuses
As a member of the Society you share in the annual profits – a bonus is normally added each year which once added, cannot be taken away. Depending on the investment performance a final, or ‘terminal’ bonus may also be paid at the end of the Plan to ensure all members receive their ‘fair share’ of profits made over the term of the Plan.
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Life cover included
In the unfortunate event of the death of the life assured during the term the guaranteed sum assured AND all bonuses already added to the Plan will be paid out and a terminal bonus may also be paid.
Things to consider
You will find more information about the Tax Exempt Savings Plan in the key features document and below are some important points that we want you to be aware of:
This is a long term investment of 10 years or more. Although you can cash in the Plan before maturity if you need to, you could get back less than you have paid in
The value of the Plan will depend upon investment performance
Inflation will have an effect on the future purchasing power of your investment
HMRC could change the tax status of these types of policy in the future