In the United Kingdom a Personal Equity Plan is a form of tax-privileged investment account. They were introduced by Nigel Lawson in the 1986 budget for Margaret Thatcher's Conservative government to encourage equity ownership among the wider population. PEPs were allowed to contain collective investments such as unit trusts. In 1992 a new type of PEP called a single company PEP was introduced only allowed to hold single company shares. To distinguish between the two types the original variety were called general PEPs.

From April 2008 a major change in the savings regime will allow investors to merge their Personal Equity Plans into the ISA wrapper. At the time the change was announced the Government gave clear indication that the revised structure should remain in place for the long term. Bringing the ISA and PEP together will, for many clients, improve the flexibility for management of their investments and should result in enhanced performance.

The reconstucted ISA wrapper offers two further distinct benefits for the investor. There is no Capital Gains Tax, so the investor can buy and sell shares without suffering tax on any gains made. Also, although standard rate tax is deducted from dividend income, there are no higher rates of tax on income; should interest be received gross then it remains tax free.