Societies seek further tax perks

friendly societies

While friendly society products are aimed at the less well off, they are also useful for those who have used up their Isa allowance. But, if the Government wants to reach more people, it may need to raise investment limits

The Association of Friendly Societies (AFS) has been lobbying the Government for several years to obtain an increase in the limit on investments in friendly society products. There has been no rise in the limit since 1995 when it went up to £25 a month. The AFS would like to see even a small increase in the investment limit, perhaps to £50 or £100 a month. However, the Government has no plan to change the limit on investing in friendly society plans on the grounds that it would lose tax revenue. An investment in a friendly society product is undermined because the amount that can go in ...