Vision Tax Exempt Savings Plan

Make the most of your tax exempt savings allowance

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.

Overview

Important info

Useful docs

How to apply

• University fees or a holiday of a lifetime - it’s up to you.

  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.

  • It’s a friendly society, tax exempt regular savings plan
  • You can save £25 per month
  • You can invest in the Engage Mutual With Profit Sub Fund for 10 years
  • Any investment growth in the plan is tax free – so long as it runs for at least 10 years
  • It's available to UK residents aged 16 - 74
  • Life cover is included – and there's no medical required
  • We guarantee to pay you back at least what you have paid in as explained below.

  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.

• What is Vision Tax Exempt Savings Plan?

  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.

  What if I already have an ISA?

  Your tax-exempt friendly society savings allowance is in addition to your ISA allowance – so you can save into both plans.

  How much can I pay in monthly?

  You can save £25 a month for 10 years.

  Where is my money invested?

  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.

  Do I get an annual bonus?

  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.

  What happens at the end of my plan?

  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.

  Is life cover included?

  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.

  Can I have more than one Vision Tax Exempt Savings Plan?

  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.

  Can I put a lump sum into Vision Tax Exempt Savings Plan?

  No, Vision Tax Exempt Savings Plan is for regular savings only.

  What are the charges?

  • There is a policy fee of £1 a month. This is deducted from premiums before they are invested.
  • There is an annual management charge. This is 1.25% of the policy value and is deducted on a weekly basis.
  • In year one, there is a charge of 50% of each premium paid in. This is deducted before premiums are invested.
  • There is a life cover charge which depends on your age, the amount of life cover and the unit value. There’s more information in the Key Features.

  The charges Engage make may increase.

  Are there any penalties if I close the Plan early?

  No, there are no early closure penalties. However please note:

  • If you cash in before one year's premiums have been paid, you will not get anything back.
  • If, within 10 years, the policy is closed or premiums stop, income tax may be payable if the final value of the policy exceeds the premiums paid.
  • A Market Value Reduction may be applied to your lump sum on surrender. This would reduce the payout you would receive.
  • If you cash in your policy during the early years you are unlikely to get back as much as you have paid in.

  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.

  Can I pay by cheque or standing order?

  No, your monthly payments can only be made by Direct Debit.

• • Key Features of Vision Tax Exempt Savings Plan
    (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)

• There are three ways to apply:

  Online

  You can only apply online if payments will be made from an account in your name.

  Apply online

  Request a pack

  By phone

  Call us on 0800 131 3350

  Lines are open 8am-8pm Monday to Friday and 9am-4pm on Saturdays.

  In branch

  Find your nearest branch

Yorkshire 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.

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.