Explanatory note
(This note is not part of the Regulations)
These Regulations amend the Personal Equity Plan Regulations 1989 (S.I. 1989/469: “the PEP Regulations”). Personal equity plans (“PEPs”) are, under the provisions of these regulations, to become stocks and shares Individual Savings Accounts with effect from the 6th April 2008.
Regulation 1 provides for citation and commencement. Regulation 2 provides for the amendment of the PEP Regulations.
Regulation 3 provides that PEPs are to be treated from 6th April 2008 as if they had been set up as stocks and shares ISAs within the revised rules relating to the structure of ISAs contained in S.I. 2007/2119 (being made contemporaneously with these Regulations).
Regulation 4 provides that the PEP Regulations (excepting the new regulation 4(1)), being obsolete, shall not have effect for the tax year starting on 6th April 2008 and subsequent tax years. Regulation 5 provides for Regulation 4(1) to cease to have effect on 6th April 2009.
A Regulatory Impact Assessment on the effect of this instrument and S.I. 2007/2119 is available at http://www.hm-treasury.gov.uk/documents/financial_services/savings/topics_savings_isas.cfm.