Taxation of Chargeable Gains Act 1992 section 151

Personal equity plans

Section 151 provides the Treasury with regulation-making powers to grant capital gains tax relief on investments held within Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs), and sets out how the income tax rules for individual investment plans are adapted for CGT purposes.

• The Treasury may make regulations entitling individuals who invest under a PEP or ISA to relief from capital gains tax on qualifying investments held within the plan.
• The income tax provisions governing individual investment plans (in ITTOIA 2005) are adapted for CGT purposes, so that references to income tax are read as references to capital gains tax, including provisions for deceased investors and children's plans.
• Regulations may provide that capital losses arising on the disposal of investments within a plan on or after 18 January 1988 are disregarded for CGT purposes — meaning you cannot claim a capital loss on a tax-exempt PEP or ISA investment.
• Where a person subscribes to a plan by transferring or renouncing shares (or rights to shares), the regulations may modify the normal CGT rules for the acquisition, transfer or renunciation of those shares, including consequential adjustments where the shares would otherwise have been treated as part of a larger pooled holding.