{ "url": "https://openlegislation.uk/personal-equity-plan-regulations-1989/regulation-5", "json_url": "https://openlegislation.uk/personal-equity-plan-regulations-1989/regulation-5.json", "legislation": "uksi/1989/469", "legislation_title": "The Personal Equity Plan Regulations 1989", "legislation_url": "https://openlegislation.uk/personal-equity-plan-regulations-1989", "path": "regulation/5", "kind": "regulation", "number": "5", "heading": "General investment rules", "text": "(1) All transactions whether by way of sale, purchase or otherwise by a plan manager in investments under a plan shall be made at the price which those investments might reasonably be expected to fetch in the open market.\n(2) Investments, or rights in respect of investments, may not at any time–\n(a) be purchased or made otherwise than out of cash which a plan manager holds (and is entitled under the provisions of these Regulations to hold) under a plan at that time; or\n(b) be purchased from–\n(i) a plan investor, or\n(ii) the spouse of a plan investor,\nso as to become plan investments under a plan to which the plan investor subscribes or has subscribed.\n(3) A plan investor’s cash subscription and any other cash held by a plan manager which he is entitled to hold under a plan shall be held only in sterling and be deposited with a deposit-taker or a building society in circumstances where–\n(a) the deposit-taker is liable to account for and pay an amount representing income tax on payments of interest in respect of the deposit calculated by applying the composite rate to the grossed-up amount of the payments in accordance with the provisions of section 479 of the Taxes Act, or\n(b) the reduced rate amount payable by the building society under Regulation 3 of the Income Tax (Building Societies) Regulations 1986 includes an amount calculated in accordance with those Regulations by applying the reduced rate there referred to to the grossed-up amount of interest paid or credited in respect of the deposit,\nand in either case the deposit is designated for the purposes of these Regulations only.\n(4) Subject to paragraph (5), cash by way of dividends, other rights or proceeds in respect of shares, not being shares in an investment trust, which are held as plan investments may be invested only by way of cash deposit or in other such shares.\n(5) Cash referred to in paragraph (4) may be invested in an authorised unit trust or in an investment trust provided that immediately after such an investment is made the total market value of plan investments in authorised unit trusts and investment trusts does not exceed one half of the market value of the portfolio.", "extent": null, "status": null, "version": "current", "annotations": [ { "type": "footnote", "label": "f1", "text": "S.I. 1986/482, amended by S.I. 1987/844, 1988/1011 and 1989/36." } ], "outstanding_effects": [ { "type": "am & rev in pt", "affecting": "uksi/2001/923", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 2001" }, { "type": "substituted", "affecting": "uksi/2001/3629", "affecting_title": "The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001" }, { "type": "inserted", "affecting": "uksi/2001/3629", "affecting_title": "The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001" }, { "type": "amended", "affecting": "uksi/1997/1716", "affecting_title": "The Personal Equity Plan (Amendment No. 2) Regulations 1997" }, { "type": "substituted", "affecting": "uksi/1997/1716", "affecting_title": "The Personal Equity Plan (Amendment No. 2) Regulations 1997" }, { "type": "amended", "affecting": "uksi/1991/2774", "affecting_title": "The Personal Equity Plan (Amendment No. 2) Regulations 1991" }, { "type": "substituted", "affecting": "uksi/1991/2774", "affecting_title": "The Personal Equity Plan (Amendment No. 2) Regulations 1991" }, { "type": "amended", "affecting": "uksi/1993/756", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 1993" }, { "type": "amended", "affecting": "uksi/1995/1539", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 1995" }, { "type": "substituted", "affecting": "uksi/1991/733", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 1991" }, { "type": "amended", "affecting": "uksi/1991/733", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 1991" }, { "type": "amended", "affecting": "uksi/1990/678", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 1990" }, { "type": "amended", "affecting": "uksi/1995/3287", "affecting_title": "The Personal Equity Plan (Amendment No. 2) Regulations 1995" }, { "type": "added", "affecting": "uksi/1995/3287", "affecting_title": "The Personal Equity Plan (Amendment No. 2) Regulations 1995" }, { "type": "words inserted", "affecting": "uksi/2005/3230", "affecting_title": "The Tax and Civil Partnership (No. 2) Regulations 2005" }, { "type": "amended", "affecting": "uksi/1992/623", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 1992" }, { "type": "replaced", "affecting": "uksi/1992/623", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 1992" }, { "type": "rev", "affecting": "uksi/2003/2748", "affecting_title": "The Personal Equity Plan (Amendment) Regulations 2003" } ], "provenance": { "source": "legislation.gov.uk", "source_url": "https://www.legislation.gov.uk/uksi/1989/469/regulation/5", "retrieved_at": "2026-10-29T15:47:16.475674+00:00" }, "licence": "Open Government Licence v3.0", "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/", "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives." }