A personal equity plan (PEP) was a form of tax-privileged investment account in the United Kingdom, available between 1986 and 1999.
The plans were introduced by Nigel Lawson in the 1986 budget to encourage equity ownership among the wider population.
One way they could be used was to hold windfall shares received by members from mutual bodies when they became listed companies.
Beginning 6 April 1999, the Advanced Corporation Tax relief on share dividends received on a PEP was halved, partially ending their tax-exempt status.
From 6 April 2004 all relief on dividends was removed, although no additional tax at the higher rate was due where otherwise it might have been.