Personal Equity Plan - PEP


DEFINITION of 'Personal Equity Plan - PEP'

An investment plan in the U.K. that used to allow people over the age of 18 to invest in shares of U.K. companies. It was done through an approved plan, qualifying unit trust, or investment trust. Investors received both income and capital gains free of tax.

BREAKING DOWN 'Personal Equity Plan - PEP'

The plan encouraged investment by individuals. Discontinued in 1999, it was replaced by Individual Savings Accounts (ISA).

  1. Equity

    Equity is the value of an asset less the value of all liabilities ...
  2. Income

    Money that an individual or business receives in exchange for ...
  3. Unit Trust - UT

    An unincorporated mutual fund structure that allows funds to ...
  4. Savings Account

    A deposit account held at a bank or other financial institution ...
  5. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  6. Investment

    An asset or item that is purchased with the hope that it will ...
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