Skip to main content

Personal Equity Plans

Volume 458: debated on Thursday 15 March 2007

To ask the Chancellor of the Exchequer whether he intends to undertake a regulatory impact assessment prior to the merger of Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs) in April 2008; and whether he has estimated likely changes to tax revenues resulting from the taxation of un-invested cash in PEPs after their conversion into ISAs. (127462)

A partial regulatory impact assessment of a package of reforms to the ISA regime, including the proposal to bring PEPs within the ISA wrapper, was published in December 2006. The Government intend to publish a full regulatory impact assessment of this package of reforms when the implementing legislation is laid in the summer. It is estimated that the application of the ISA treatment to interest earned on all un-invested cash held in former PEPs will have only a negligible effect on revenues.