Old pep or new isa

dmwg40

Hello i have a old woolwich Pep and wanted to know wether its worth putting money into or take the cash out and putting into a isa or other tax free investment.

whats your advise
cheers in advance

RayWolfe

We can't help you with such limited information. What I can tell you is that you cannot add to a PEP. Whilst old ones exist they were replaced by ISAs about 8 years ago.

ramborai1987

what you should do is NOT withdraw your PEP. change the investments within the PEP if its not doing so well and top up your new S&S ISA.

dmwg40

cheers, for that info

dunstonh

PEPs can be transferred so no point wasting your ISA allowance. Plus, transfers can often be cheaper than new money.

david78

You cannot add new funds to your PEP but it is valuable. Please don't just sell it. Your best option is to transfer it to another PEP manager (almost all stocks and shares ISA managers are PEP managers as well). Then after 6th April 2008, your PEP will become an ISA automatically. You should look to diversify your holdings, perhaps by using a fund supermarket or self-select PEP (most wrap-accounts are both these days).

If you have an existing stocks and shares ISA you can do the PEP transfer to them, so that the PEP and your ISA are merged into one account next year. If not, you can take out an ISA plan now if you have additional funds available.