PEPs
Even though you can not put any new money into PEPs, you can still transfer any existing PEPs you own.
How our Investment Trust PEP works
You can transfer your PEPs to us from a minimum transfer value of £2,000, and can invest in all eight of the investment trusts we manage. The guide opposite contains the information and application forms you need. Investment in a PEP should be regarded as long term.
You can visit our Investment Trusts section for more information on the trusts we manage including details of risks. Remember, the price of shares may fall as well as rise and you may not get back the amount you invested. Where a trust invests overseas, exchange rates can also affect value and income. Current tax rates and reliefs and the tax treatment of PEPs may change. The value of any tax benefits will depend on investors' individual circumstances. You should read and retain a copy of the Key Features and Terms & Conditions of the PEP before making any investment decisions. We would recommend that you print these out for future reference.
PEP Changes Announced - April 2008
In November 2006, Ed Balls, the economic secretary to the Treasury, announced a series of forthcoming changes to PEPs and ISAs that are designed to simplify and encourage personal savings in the UK.
From 6 April 2008 all Personal Equity Plans (PEPs) will automatically become stocks and shares ISAs and will be subject to ISA rules.
What happens to my PEP?
All PEP accounts will automatically become a stocks and shares ISA. You will be able to invest in this re-labelled PEP, which is now a stocks and shares ISA, as long as you haven't subscribed to another stocks and shares ISA during the current tax year. You can still invest up to your full annual ISA investment allowance of £7,200.
Are there any charges?
The PEP itself has a flat-rate annual management charge of £30 plus VAT irrespective of the number of trusts in which you invest or the amount you invest. There are also charges for withdrawals and transfers. The investment trusts incur costs in managing and administering their portfolios - these costs are paid directly by the trusts from their assets. Please read the Key Features of the PEP for more details on charges and how they might affect your investment.
