Boost Tax Free Savings Limits

Boost Tax Free Savings Limits

According to Family Investments, if the threshold of tax-exempt savings plans were lifted friendly societies could offer better products.  Anyone is eligible to invest up to £25 a month, or £270 a year, in a friendly society plan and provided they keep it going for a minimum of 10 years they can receive all proceeds tax-free under current rules.  

Miles Bingham, head of savings and investments for Family Investments said, “It would be great for friendly societies if the amount that could go into them was shifted up.  It does not appear that the government wants to do this and we have been in dialogue with if for many years.  The danger is the effects of inflations means that the pot at the end of the term becomes a small amount of money and may result in them not providing good value for money.  I am afraid to say that we could offer better products in the threshold was lifted”.

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