§ Mr. Norman Lamont
Investment in authorised unit trusts and investment trusts approved under section 359 of the Taxes Act 1970 will be allowed up to £420 a year or 25 per cent. of the investor's annual subscription, which ever is the higher. This will enable a personal equity plan investor to put a monthly subscription of £35 or less solely into a unit trust or investment trust. Those investing larger amounts will, if they wish, still be able to diversify their portfolios by placing a proportion of their investments in investment trusts and-or unit trusts.
The purpose of the limit is to enable small investors to have a reasonable spread of risk, while still encouraging 611W the growth of direct personal investment in United Kingdom companies, which is the primary aim of the personal equity plan scheme.