Your lump sum is split into equal rungs - one gilt maturing in each consecutive year, starting next year. Each rung redeems at £100 par on a date known the day you buy.
Below £100 = CGT-free gain
Paid twice a year, taxable
Total cash your ladder returns
on invested - of it a CGT-free gain
Keep it rolling
Each year a rung matures you can spend the cash - or reinvest it into a fresh gilt at the long end, keeping the ladder the same length indefinitely, always at current yields.
Estimate only, not investment advice. Assumes each rung is held to maturity.
While rungs are alive they all pay coupons; each year one rung also redeems at £100 par. Coupons shown net of tax.
| Year | Rungs alive | Net coupons | Rung redeems at par | Cash this year | Cumulative |
|---|---|---|---|---|---|
| Total | |||||
| Scenario | Rungs | Total cash back | |
|---|---|---|---|
Gilt Ladder Calculator by TaxFly — free UK tax calculators