Millions of UK savers will be able to breathe new life into their PEPs when their consolidation with ISAs comes into effect next week, says Alliance Trust.
Claudia Philips, managing director of investment dealing at Alliance Trust, says investors may have let their PEPs take a back seat when ISAs were introduced in 1999.
For the first time since April 5, investors will be able to subscribe new money to their PEPs, and Alliance Trust says the rule changes also give investors the chance to manage their holdings more efficiently in an ISA by checking their asset allocation across their whole investment portfolio.
Philips says: “Since the introduction of ISAs in 1999, many PEP investors may well have left their PEP investment sitting idle while they turned their attention to new investment accounts. People should see this new tax year as the way to kick-start their new ISA.
“The consolidation of PEPs into ISAs presents an opportune time for investors to look at their investments, particularly in former PEPs, and to assess whether the investments they made many years ago, including those in the old single company PEPs, still meet their current investment needs.
“With ongoing volatility in markets investors have an opportunity to look at their portfolio to make sure that it is working as hard as it possibly can for them and still meets their investment objectives.”
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