Split Cap Investors’ compensation can remain in PEPs and ISAs
[i]The PEP and ISA Managers Association (PIMA)[/i] has confirmed with Inland Revenue that any compensation eligible to investors arising from the recent split capital investment trust settlement reached between the FSA and 18 firms on 24 December can be retained in the respective PEP or ISA accounts.
This positive result follows a campaign by PIMA to ensure that the Inland Revenue knew of the concerns of managers and investors. PIMA was formally notified that the IR would permit the compensation funds to stay within the accounts.
Tens of thousands will receive disbursements of £194 million as part of the redress for the mis-selling scandal arising from the widespread sale of zero dividend preference shares in split capital trust companies, unit trusts and other investments in zeros.
[i]PIMA Director-General Tony Vine-Lott said: ‘We are delighted PEP and ISA split-cap investors can keep any compensation in their ‘tax-efficient wrapper.’ We greatly appreciate the cooperation and affirmative decision of the Inland Revenue regarding this issue. It is important that the money is reinvested. We think that this keeps with the spirit of the compensation which was designed to replenish the investment accounts of those who lost out due to the collapse of the split-cap investment trust companies,’.[/i]
[b]Notes to Editors:[/b]
PIMA – the PEP and ISA Managers Association – represents the interests of over 100 member firms including stockbrokers, banks, fund managers, life offices, building and friendly societies and third party administrators. PIMA’s primary activities include information, technical advice and assistance on PEP/ISA regulations and other tax initiatives; lobbying through political parties, HM Treasury, Inland Revenue and the FSA, for improvements to the ISA & PEP schemes and other tax incentivised saving and investment vehicles.
For more information and comment:
Tony Vine-Lott, PIMA
07790 006108
Iain Anderson, Cicero Consulting
020 7665 9532
020 8550 7045
Jacob Coy
020 7665 9535
079 0636 1970