From: John Boyle 
Newsgroups: uk.finance
Subject: Re: Chargeable Event ?
Date: Mon, 23 Oct 2006 17:17:00 +0100

In message <4q40a2FkvcosU1@individual.net>, Roger Mills 
 writes
>Yes that makes sense.
>
>As has already been said, unless the addition of the 2.5% 'gain' brings your
>total taxable income into the 40% bracket
>Not sure I understand the IFA's advice. When the bond is not performing
>well, the income it generates will not keep up with the 5% you were
>withdrawing - let alone with 7.5% - so you'll end up running the capital
>down at an alarming rate.

Thats the idea, its a way of getting out of a crap fund as quickly as 
possible without incurring a penalty. 7.5% is a common maximum penalty 
free withdrawal in the first few years and may also avoid any applicable 
MVA.

-- 
John Boyle