Personal Equity Plan
- noun a government-backed scheme to encourage share-ownership and investment in industry. Individual taxpayers can each invest a certain amount of money in shares each year, and not pay tax on either the income or the capital gains, provided that the shares are held for a certain period of time. PEPs were replaced by ISAs in April 1999, but existing schemes will continue. There are several types of equity PEP: the single-company PEP, where only shares in one company are allowed, and the general PEP, where shares in several companies can be held or other types of investment can be made.