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Following the pre-Budget report announcement, draft regulations have been issued which will make changes to the PEP rules from 6 April 2001. These regulations include the following:

  • Abolition of the distinction between general and single company PEPs. In effect a single company PEP will be treated as a general PEP which means that the assets of that PEP need no longer be restricted to the shares of a single company.

  • Alignment of the qualifying investments for a PEP with those for an ISA by applying the ISA qualifying investments rules to PEPs. This will widen investment opportunities &#45 for example, ordinary shares will qualify provided they are quoted on a recognised stock exchange rather than having to be shares of a company incorporated in the European Union (EU ) which are quoted on a recognised EU stock exchange. Subject to certain conditions, a wider range of gilts will be qualifying investments and a wider range of corporate bonds will be available because, as for ordinary shares, they can be quoted on any recognised stock exchange or issued by a company which itself is quoted on any recognised stock exchange.

  • Part of a PEP can be transferred to a new manager not just a whole PEP as at present.


Life policyholder taxation

7. LIFE POLICYHOLDER TAXATIONLegislation will be included in Finance Bill 2001 to clarify and simplify the tax treatment of transfers of shares in life insurance products. New measures will also be introduced to require insurance companies to give details of life policy gains to their policyholders. The new rules on transfers will have effect for […]

Who wants to advise a millionaire

“So, they is some people who suddenly get loads of money who become very tasteless. How has you two managed to avoid that?” While David and Victoria Beckham might not have been able to assist TV comedian Ali G on the question of taste, they have certainly benefited from considerable financial advice. Now, so many […]

Enterprise incentives extended

The decision in the Budget to extend the enterprise management incentive scheme, which helps growing businesses, could benefit IFAs because of the increased wealth generated for the economy. The Budget doubled the amount of share options that benefit from tax relief to £3m and removed the upper limit of 15 employees for companies which qualify […]

Will spoonful of tax breaks make medicine go down?

The Conservatives have announced proposals to give substantial tax benefits to people paying for private medical insurance as a way of expanding the role of the private healthcare sector. With a general election expected in the spring, the issue looks set to feature in the main parties&#39 campaigns. The Tories have suggested that, if elected, […]


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