What happens to PEP in April?

ipri

I understand my PEP will become a "stocks & shares" isa after April.What are the implications?Should I leave the money where it is ....or should I move it in the current climate? Ian

dunstonh

I understand my PEP will become a "stocks & shares" isa after April.What are the implications?

Nothing significant. A few of the things where PEPs were fractionally better than ISAs will ceased to exist. Apart from that, no other difference and this is a common sense move to remove a legacy tax wrapper.

Should I leave the money where it is ....or should I move it in the current climate?

What current climate and how does that impact on your particular investments?

ipri

The climate of uncertainty...would it be best to leave this as it is..or cash it in to prevent fall in value?..if it canges to stocks /shares..who decides whicn s/s it goes into? ian

dunstonh

The climate of uncertainty would it be best to leave this as it is..or cash it in to prevent fall in value?..

Wasnt that a decision to make before the stockmarket went down over 20%? Now that its dropped that much you need to decide if the investments you hold have bottomed out, could see further drops or offer good potential. Are you even invested in stocks and shares? Are you in an area that hasnt dropped or has but now offers potential? Are you in a higher yielding investment that now looks attractive?

There is never a reason to cash in a tax free PEP/ISA unless you want to spend it.

if it canges to stocks /shares..who decides whicn s/s it goes into?

The only people who decide how you invest are you IFA, stockbroker or yourself.

The renaming of the product wont have any other impact that you will notice apart from being called an ISA instead of a PEP. You will still have access to the 2000 odd unit trust funds, investment trusts, shares etc. If you want to switch around you can just as you always have done. For the typical consumer it is just a change in name that they will notice.