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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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PEPs and ISAs schemes: general


The Personal Equity Plan (PEP) was introduced with effect from 1 January 1987 to encourage wider share ownership. No new subscriptions may be made to a PEP after 5 April 1999. The Individual Savings Account (ISA) succeeds the PEP and subscriptions may be made to an ISA from 6 April 1999 onwards.

Provided certain conditions are satisfied qualifying investments held in a PEP and in an ISA are exempt from Income Tax and Capital Gains Tax.

Additional guidance is available in SAIM 2310