Children’s Tax Exempt Plan

A helping hand
For your children

It’s hard to imagine our children being fully grown adults. When the little ones become big ones. It seems like such a long way away, doesn’t it? But it’ll be here before we know it. The Foresters Friendly Children’s Tax Exempt Plan is a great way for you to give them some financial support for those important adult years ahead.

What is a Children’s Tax Exempt Plan?



sum for your child

Life cover


Pay in


a month

Save for between

10 and 25


This affordable plan offers a tax-free cash sum when they need help the most. Imagine helping them buy their first car, paying towards university fees, or even helping with a deposit on a property. What a wonderful feeling to play such an important part in their lives.

Our Children’s Tax Exempt Plan is provided by POIS who are a part of Foresters Friendly Society, and can be opened by setting up a monthly Direct Debit.

Request a pack to find out more about the Children’s Tax Exempt Plan Request a pack

Why choose the Children’s Tax Exempt Plan?

Saving made simple

Saving is made affordable with our child tax exempt savings plan, at just £25 per month.

Perfect at any age

Available for children aged 0 to 15. But don’t worry if you have a child over 16. We offer an adult Tax Exempt Savings Plan as well.

Additional way to save

A Children’s Tax Exempt Plan can be held alongside a Junior ISA or Child Trust Fund.

Responsible investments

Your money is responsibly invested in the POIS Flexible Growth Fund for potential growth over the longer term whilst making a positive impact on society.

Choose your saving length

Choose how long you want to save, from 10 to 25 years. Your child must be at least 16 years old to receive the cash sum.

Great membership benefits

As a member, your child or grandchild has access to membership benefits which include discretionary grants to help cover the cost of things like higher education and healthcare costs.

Ready to start saving for your child’s future? Apply today!

See how much you could save

A real-life example of a Children’s Tax Exempt Plan

A £25 per month Children’s Tax Exempt Plan which commenced in August 2013 with a 10 year term provided a payout of £3,568.35 at maturity. This is an average annual return of 3.4% and a total return of 19%, after administration fees and charges.

The above graph is provided for information purposes. Past performance should not be seen as a reliable indicator of future results. The value of holdings within the fund can fall as well as rise, and you could get back less than you have paid into the plan. As the fund holds overseas assets, the Sterling value of these assets may rise and fall due to exchange rate fluctuations.

Investing responsibly in the POIS Flexible Growth Fund

The POIS Children’s Tax Exempt Plan invests in the POIS Flexible Growth Fund. This is a responsible investment which we believe can not only deliver sustainable, long-term value but that can also make a positive impact on society.

This is an actively managed fund with the aim of achieving long-term growth, while spreading risk across a wide range of investments. It invests mainly in shares, both UK and overseas, along with fixed interest investments such as Government gilts and property.

The money you invest buys units or shares in a fund and the units have a daily value which can be used to work out the current overall value of your plan.

To work out the value of your plan simply take the number of units your plan currently holds and multiply this number by the current Unit Price for that plan.

For more information about the POIS Flexible Growth Fund and to see the daily unit value please see the about our funds information on the POIS website.

Added value for your child – Member Benefits

Taking out a Children’s Tax Exempt Plan means your child is part of the Foresters Friendly Family, and can enjoy some wonderful, unique benefits including discretionary grants to help with the higher education and to support life’s ups or downs. In 2023, we gave back over £1.72 million to our Foresters and POIS members in the form of discretionary grants and charitable donations.

Find out more

Frequently Asked Questions

Who can open a Children’s Tax Exempt Plan?

Anyone can open a Children’s Tax Exempt Plan.  If you are not the child’s parent or guardian, we’ll ask you to confirm that they agree to you setting up the plan. We will then send the plan documents to them so you will need to provide their details as part of the application process.

If the person paying into the plan isn’t the parent or guardian, they’ll receive a copy of the Direct Debit agreement to show they are paying the contributions. They’ll also have the right to cancel the children’s savings plan in the first 30 days.

Can I open more than one Children’s Tax Exempt Plan for my child?

Unfortunately not. Under current legislation, each person (including children) can save up to a maximum of £25 a month in a Friendly Society tax free regular savings plan. And because monthly contributions for this plan are fixed at £25, you can’t hold more than one plan.

However, any contributions above these limits can be invested in our other children’s savings plans such as a Junior ISA.

What is life cover?

This plan includes life cover at no additional cost, meaning that if your child passes away before the plan ends then their estate will receive a cash payout. You won’t have to answer any medical questions when applying for the plan making it simple for you to take out, but you will benefit from this type of cover.

Until the child reaches the age of 10, the life cover will be the return of the monthly contributions that have been paid into the plan. After they turn 10, the life cover is calculated at 75% of the total contributions you are due to make over the plan’s full term which you choose when you open it.

In both cases, the life cover is available as long as monthly contributions continue to be paid. If the value of the plan is higher than the life cover, the plan value will be paid to the estate.

Are there any charges?

As with any investment, there are costs in managing the plan on your child’s behalf. These include an annual management charge and a monthly administration charge which are deducted from the value of their plan.

For more information about charges, see the Children’s Tax Exempt Plan Key Information and Important Information documents

Where is the money invested?

The monthly contributions you make will purchase units in the POIS Flexible Growth Fund. The aim of the fund is to achieve long-term growth, while spreading risk across a wide range of investments. It invests in UK and overseas shares, along with Global Convertible Bonds. It is an actively managed fund which means our expert fund managers make decisions about how to invest the fund’s money as opposed to the fund just following a market index.

The value of holdings within the fund can fall as well as rise, and you could get back less than you have paid into the plan. As the fund holds overseas assets, the Sterling value of these assets may rise and fall as a result of exchange rate fluctuations.

For more information on the POIS Flexible Growth Fund please see the Fund Information on our POIS website.

What makes this a responsible investment?

As a responsible investor, we want to manage ESG risks and opportunities when investing on behalf of our members.

We have identified certain sectors, products and services, in which we will not invest, above a certain threshold due to ESG-related risk factors.

Consequently, exclusions on controversial weapons, palm oil, soft commodities and climate risks are applied across all assets.

We also exclude the following sectors and areas within our Flexible Growth Fund:

  • Tobacco: To avoid financing the tobacco industry and thus contribute to protecting public health.
  • Defence: White Phosphorus – To avoid financing companies producing or distributing incendiary weapons with white phosphorus.
  • Low ESG Quality: Tight monitoring of companies with the worst ESG practices.
  • Severe Controversies: To avoid financing companies in violation of the United Nations Global Compact.
What happens if I stop paying into a Children’s Tax Exempt Plan?

We’d urge you to keep up your payments. If you stop making contributions, the life cover will end, so, if your child passes away, the payment returned to their estate will be the value of the plan.

If you miss some monthly contributions to the plan, you have 13 months to pay the missing contributions, all together in one lump sum, and continue paying into the plan. If, at the end of the 13 months, you have not made up the missing contributions there will be various scenarios that could apply. Please see the Important Information document for further details.

What happens if the plan is cashed in early?

This is a mid to long-term savings plan so you should aim to keep the plan open for the length of time you choose when you open it.  That said, we appreciate that personal circumstances can change. So, if you do need to cash the plan in early you should read the Important Information document to see what charges may apply.

Your child cannot cash in this plan until they reach the age of 16. The payout will be paid to your child at all times, as the plan is for their sole benefit.

What happens if I pass away?

If you pass away while paying contributions on behalf of a child, someone else may continue to pay the contributions so the plan can continue to its maturity date.  If there is no one to continue paying into the plan, the plan can either be cashed-in or stopped.

Please see the Important Information document for further details.  Some charges may apply.

What happens when my child’s plan reaches maturity?

We’ll send the child a maturity information pack a little while before the plan is due to mature. This will advise how much the cash lump sum payment will be and will detail the information we’ll require so we can transfer the money to them. If the maturity date is set for the child’s 16th birthday, the maturity information pack will be sent to the parent/guardian.

When the plan matures all the money saved and all investment returns less charges will be paid directly to your child. So that we can do this, your child will need a bank account set up in their name.

I’m not sure if the Children’s Tax Exempt Plan is right for me. What should I do?

If you’re unsure as to the suitability of this product you should seek advice from a Financial Adviser. Of course, you may have to pay for this advice.

Ready to get open a Children’s Tax Exempt Plan? APPLY ONLINE OR Request a pack

We’re here if you need help or have any questions

If you’re a little stuck and need help, please get in touch. Our UK based team can help to make things as smooth and easy as possible (lines are open Monday to Friday 9 am to 5 pm).

Call free on 0800 988 2418