From: john boyle 
Newsgroups: uk.finance
Subject: Re: More tax on pensions
Date: Wed, 8 Dec 2004 23:08:08 +0000

In message , Robin Graham 
 writes
>
> wrote in message
>news:1102521305.816800.41990@z14g2000cwz.googlegroups.com...
>> http://news.bbc.co.uk/1/hi/business/4078101.stm
>> This lot really wont be happy until I am begging on the streets.
>>
>
>The thing is not to be a with-profits fund. AFAIK this tax only applied to
>these. With-profits funds are probably a bad idea even without this new
>problem (a contentious statement).

Quite!

The Govt (via the FSA) panics the market and then tells the W/P funds to 
switch a wodge of their funds into Fixed Interest thereby preventing the 
funds from participating in equity gains.

Investors panic so the funds apply an MVA.

Then the Govt increase tax on the funds.

Hmm am I cynical that this just happens to coincide with the Govts 
increased need for borrowing?
-- 
John Boyle