personal equity plan


personal equity plan
personal equity plan (PEP)
Schemes which give UK resident investors the opportunity of investing in the stock market without paying tax. Shares held in a PEP are held on trust for investors, who retain the beneficial ownership of the shares. While they are held in the PEP no income tax is payable on dividends, and no capital gains tax on disposals.
PEPS were replaced by individual savings accounts (ISAs) from 6 April 1999 but PEPs in existence at that date can continue.
For further information, see the HM Revenue & Customs website
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.