2. In 1987, the annual limit for investment in shares was £2,400. It was increased each year to £6,000 in 1990-91 and subsequent years of the scheme. Initially only a proportion of the limit could be invested in unit or investment trusts. This restriction was removed in 1992-93.
3. From 1 January 1992, investors were allowed to subscribe in any year to a single company PEP (SCP) investing in the shares of just one company as well as to a general PEP investing in one or more companies. The limit on investment in a SCP was £3,000. Also from January 1992, shares acquired under approved profit-sharing schemes and savings-related share option schemes (see the 'Employee share schemes' and 'Profit related pay' sections) could be transferred directly into a SCP up to the £3,000 limit free of capital gains tax.
4. After 5 April 1999, no further subscriptions to PEPs could be made, but savers holding PEPs were able to continue holding them under the current rules. From April 2001, PEP regulations were brought in line with ISA regulations and there were no distinction between the general and single plans. Additionally, in line with the rules for the new individual savings account, a 10 per cent tax credit was paid on dividends from UK equities until 5 April 2004.
5. All PEP accounts automatically became stocks and shares ISAs on 6 April 2008 without individuals needing to complete any new forms, and became subject to ISA rules. The annual subscription limit will therefore be £7,200. Further information appears in the introduction to chapter 3 (Individual Savings Accounts).