Free Standing Additional Voluntary Contributions (FSAVCs)

Free Standing Additional Voluntary Contributions (FSAVCs) work in much the same way as AVCs, however, there are some important differences. Some of these are:

  • you must choose the financial institution to invest your FSAVCs in and you may want to consider their different charges, alternative investments and past performance.
  • you must make the necessary arrangements – contributions will not be deducted from your pay. The FSAVC provider will reclaim the tax you have paid on your contributions. If you are a higher rate tax payer you will need to complete a tax return to reclaim higher rate tax relief.
  • you cannot continue paying into an AVC on leaving the Scheme. Members with an FSAVC however can carry on paying into the same contract.