Statutory Instruments

2007 No. 2120

INCOME TAX

The Personal Equity Plan (Amendment) Regulations 2007

Made

25th July 2007

Laid before the House of Commons

25th July 2007

Coming into force

6th April 2008

The Treasury, in exercise of the powers conferred upon them by sections 694 to 696 and 701(1) of the Income Tax (Trading and Other Income) Act 2005(1) and section 151 of the Taxation of Chargeable Gains Act 1992(2), make the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Personal Equity Plan (Amendment) Regulations 2007 and shall come into force on 6th April 2008.

Amendment of the Personal Equity Plan Regulations 1989

2. The Personal Equity Plan Regulations 1989(3) are amended as follows.

3. For regulation 4(1) substitute—

“(1) A plan which, immediately before 6th April 2008, is—

(a) held by a plan investor, and

(b) exempt from tax under regulation 17,

shall be treated, on and from the 6th April 2008, as an account, set up as a stocks and shares account and made up of a single stocks and shares component only, within the meaning in regulation 4(1) of the Individual Savings Account Regulations 1998(4).”.

Revocation of the Personal Equity Plan Regulations 1989

4.—(1) The Personal Equity Plan Regulations 1989 (other than regulation 4(1)) shall cease to have effect for the tax year 2008-09 and subsequent tax years.

(2) Regulation 4(1) of those Regulations shall cease to have effect on 5th April 2009.

Frank Roy

Alan Campbell

Two of the Lords Commissioners of Her Majesty’s Treasury

25th July 2007

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.

(1)

2005 c. 5; section 695 was amended by the Commissioners for Revenue and Customs Act 2005 (c. 11) to replace a reference to the Commissioners for Inland Revenue with a reference to the Commissioners for Revenue and Customs. Back [1]

(2)

1992 c. 12; section 151 was amended by section 85 of the Finance Act 1993 (c. 34), section 64(2) of the Finance Act 1995 (c. 4) and paragraph 436 of Schedule 1 to the Income Tax (Trading and Other Income) Act 2005. Back [2]

(3)

S.I. 1989/469; regulation 4(1) was amended by S.I. 1990/678, 1991/733 and 2774, 1998/1869 and 2001/923. Back [3]

(4)

S.I. 1998/1870; relevantly amended by S.I. 2007/2119. Back [4]