Personal Equity Plans (PEPs)
No more new PEPs can be opened, since ISAs have now taken over as the Government's ‘flagship’ tax-free savings vehicle.
The maximum allowable for investment into PEPs was £6,000p.a per person into a general PEP in addition to a maximum of £3,000p.a per person into a single company PEP.
Although new PEPs can no longer be opened, existing PEPs keep their tax-free status.
It is important to ensure, via regular review, that existing PEP holdings are invested into appropriate funds to suit the individual’s needs.
From April 2008 all PEPS were converted into ISAs.