§ Mr. Soamesasked the Chancellor of the Exchequer if he proposes any changes in the PEP regulations; and if he will make a statement.
§ Mr. Norman LamontI have decided to make a number of changes to the regulations on personal equity plans designd to simplify the running of the scheme. The changes to take effect from 1 January 1988 are:
- (i) Plan managers will be required to provide plan holders with copies of the report and accounts of each company only if the plan holder opts to receive them. Discretionary plan managers will also he required to provide a six monthly statement explaining why they have bought and sold particular shares.
- (ii) Cash payments into PEPs above the £2,400 limit may be made in order to take up the rights issues or other entitlements arising from beneficial ownership of shares, provided the shares were purchased before the announcement of the rights issue or other entitlements.
- (iii) The time period for which cash may be held after the first year of a plan is to be increased from 28 to 31 days.
- (vi) A minor tehnical change will ensure that, as always intended, the CGT exemption should in all cases apply only to capital gains over and above the market price at the time the shares are purchased into the PEP.
I shall in due course table draft regulations to bring these changes into effect.