PEPs Transfers

PEPs - or Personal Equity Plans - were introduced in 1987 and, like ISAs, were a way of protecting investments from tax.

They were scrapped in 1999 to be replaced by ISAs (Individual Savings Accounts) however you can continue to benefit from the tax-free status of your PEP. These are the same tax advantages as an ISA.

You can no longer open a new PEP or if you have an existing PEP you cannot invest any new money into it. You can however change the investments within your PEP to improve the performance of one or more share, and you can transfer to a different provider. You can also now transfer part of your PEP to a new provider or into new shares, leaving the rest of it intact.

Under rules introduced in the 2008 budget, all PEPs automatically become stocks and shares ISAs.

There were two kinds of PEP - General and Single Company.

A General PEP allowed you to invest up to £6,000 in one year in shares, bonds or unit trusts. A Single Company PEP allowed you to invest up to £3,000 a year in a single company.

Since April 2001, when the rules on PEPs were changed, there is now no distinction between General and Single Company PEPs and you can merge them together.

The new rules also mean you can invest your PEP money anywhere in the world, in any share listed on a recognised Stock Exchange. You can also invest in a wider range of investment funds and other corporate bonds and gilts.

Below are links relating to PEP Transfers:

ISAs can provide a flexible, tax efficient way to help build a pension fund. Visit us at www.pensions.co.uk for more information and a comprehensive guide to having a financially secure retirement.

 

UK Investments - Financial, Property & Other Investments - 1998-2008

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