"Gross roll-up” investment instruments are tax–efficient to the extent that all taxes are deferred until such time as monies are drawn down. This exit-tax currently stands at 28%. on the growth element. This tax is deducted on each 8th year anniversary or on exit.

Among the attractions of this style is that regular transactions like switching within a “gross roll-up” wrapper in itself doesn’t trigger a tax-hit. And where a regular income stream is selected there is a modest tax retention (reflecting only the growth element within draw-down.)

The upshot is that with dividend income automatically reinvested in the core funds, there is no distinguishing income and capital. And if growth in the fund (comprising capital appreciation and reinvested dividend income) should stack-up at say 6% p.a. , a draw-down of 5% p.a. is plausible - with capital values remaining intact.