LDB65 Wandsworth

If I have £40k of taxable income and dividends (no other income) and fully surrender an onshore bond with a chageable event gain of £150k, I disclise the full £150k in my tax return under Other UK income, Life Insurance Gains. The top slicing relief to which I am entitled is automatically calculated via the self assessment form. But what is the impact on my Personal Allowance? Is the £150k included in "adjusted net income" so I lose my PA entirely? And, if yes to that, is the effect to reduce the 40% threshold so I pay 20% tax on income up to £37,700 and 40% on the income above that?