A PEP is a financial product, usually bought from a bank or
building society, by which a personal investor can hold a portfolio
of shares with Income Tax benefits. It may also contain uninvested
cash and undistributed dividends (
IHTM18110).
If the deceased owned a PEP, the taxpayer will probably have
obtained a valuation from the PEP manager. The value of the shares
in the PEP should correctly be included on the IHT411 (
IHTM18011) but disallow any deductions
for manager’s fees. If the taxpayer has not obtained a
valuation from the PEP manager the shares should be listed
individually and valued in the same way as other shares.
Any uninvested cash held in the PEP should be included with
the value for the shares.
