SolvedTCTM04601 | Further disregards in the calculation of investment income: Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs)
From HM Revenue & Customs · Tax Credits Technical Manual
The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 10(2), Table 4, Item 1.
When calculating investment income, disregard the following:
Any interest, dividends, distributions, profits or gains from a Personal Equity Plan (PEP) or an Individual Savings Account (ISA). But interest under a PEP is only disregarded to the extent that it does not exceed the £180 annual limit mentioned in regulation 17A(2) of the PEP Regulations 1989.