A little more PEP

Most investors who buy PEPs simply take up their pounds 6,000 general PEP allowance, which lets them shelter a spread of stock market investments from tax, thereby reducing some of the risks of shares. Most people do not take advantage of their entitlement to an additional pounds 3,000 PEP allowance, which allows them to shelter shares of just one company from tax.

HSBC Asset Management, sister company of Midland Bank and First Direct, has just launched a PEP that looks to sidestep the perceived higher risks of single-company PEPs. HSBC PEP Plus allows investors to put the full pounds 9,000 into a relatively low-risk investment. This offers the capital growth of the stock market plus a bonus of 33 per cent of that growth or your original money back if the stock market is down after five years. Telephone 0800 262115.