Under gross roll-up, investments may accumulate without the imposition of tax. However, an exit tax applies when a chargeable event occurs, such as the receipt of payments from or the disposal of investments in the life policy or fund or the ending of the eight-year period following the acquisition of a policy or the units within the fund. There are varying rates applying to these investments depending on the frequency of the payments to the investor and, in the case of foreign investments, on whether the income or gains are correctly included in the investor's tax return. The rates are generally at the standard rate, currently 20%, or at the standard rate plus 3%. Both of these have not been increased since 2000.

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