Build a gilt ladder

A rung is one year's income, funded by one gilt whose redemption lands in that year. The ladder buys each rung at its mid dirty price — clean plus accrued, per £100 nominal — from the report named in the Allocation card's caption, so the quantity is what that money actually buys rather than a round £100 of face value.

Income mode solves for the lump sum a target annual income needs, growing that target by the inflation rate you set so each year's draw keeps its buying power. Lump sum mode runs the same ladder the other way: a given amount, and the income it supports.

Coupons add income as they arrive and are not reinvested in the model, so a rung's year receives its gilts' coupons plus, in the year it matures, that gilt's redemption — the principal that funds the rung. Cash flows, in today's money deflates every future payment at the inflation rate you chose, treating the ladder's first year as today.

The tax rate is applied to coupon income; gilts are exempt from capital gains tax, so the redemption is not netted.