Personal Equity Plans (PEPs) were introduced by the Government in January 1987 and made tax efficient to encourage people to invest. This means that any returns from PEP investments are free of personal liability to UK income tax and capital gains tax.

PEPs initially restricted investors to buying stocks and shares, although corporate bonds were later included.

PEPs haven’t been available for new or additional investment since 6th April 1999 when they were replaced by Individual Savings Accounts (ISAs).

Existing PEP investments can, however, be transferred to alternative PEP funds or providers without losing the valuable tax benefits. As with all investments PEPs should be reviewed to ensure they continue to help achieve investment goals.

Future basis and rates of tax may vary.

From 6 April 2008, all existing PEP investments will automatically become ISAs and PEPs will cease to exist from this date.