PEPs - What is a PEP

Personal Equity Plans (PEPs) were introduced by the government in 1987 as a tax efficient method of saving and allowed investors to invest up to £9,000 per annum.

Investors had the choice of investing £6,000 in a General PEP, which could be invested into collective funds such as a unit trust or an investment trust and £3,000 into a Single Company PEP, which had to be invested in one single company share.

On 5th April 1999, PEPs were replaced with ISAs and no additional money can now be invested into them. After 6th April 2008 all PEP accounts have automatically become Stocks and Shares ISAs