Property investment glossary

Salary Sacrifice

A tax-efficient way to contribute to an individual Defined Benefit pension. Through the sacrifice of a portion of an employee’s annual salary, both the employee and employer can receive tax or National Insurance savings.


Property can be split into various sectors including: office, commercial, residential, student, hospitality and industrial.

Self-Invested Personal Pensions

Self-invested personal pensions (SIPP) are government-approved ‘do-it-yourself’-type personal pension schemes. Hereby you can choose and keep control of which assets your pension savings should be invested into.

Social Housing

Social Housing offers lower, more affordable rents for those with lower incomes.

Stamp Duty Land Tax (SDLT)

Stamp Duty Land Tax is the tax you pay when you buy a property. There are now two different types of stamp duty rates: one for homeowners and one for the purchase of a second home not used for owner-occupation (namely buy-to-let or second homes). For owner-occupiers, you pay nothing on the first £125,000 of the property price, 2% on the next £125,000, 5% on the next £675,000, 10% on the next £575,000 and 12% above £1.5million. For non-owner-occupiers, you pay an additional 3% levy on top of this slab rate.

Standard Lifetime Allowance

An overall limit on the amount of pension savings an individual can draw out without incurring a tax charge. See Lifetime Allowance.

State Pension

A regular payment from the UK Government which you are entitled to when you reach State Pension age, which is currently 65 for men and 62 for women until 2018, when it will equalise at 65 for both genders. The full basic State Pension is £113.10 per week, but from April 2015, this is increasing to £115.95 per week. However, the State Pension Regulations are changing:

  • New State Pension— from 6 April 2016, the New State Pension will replace the current State Pension scheme, and will be no less than £148.40 per week. These regular payment from the government can be claimed if you reach State Pension age on or after 6 April 2016 if you’re eligible and either a man born on or after 6 April 1951 or a woman born on or after 6 April 1953.
  • Additional State Pension—an additional income that you could be eligible for alongside the basic State Pension. Based on your National Insurance contributions, you are automatically opted into the Additional State Pension scheme based on eligibility, dependent on your earnings and whether you have claimed certain benefits. The Additional State Pension is paid alongside your basic State Pension and increases every year in line with UK inflation.

Student Accommodation

Student accommodation are properties intended for the housing of students only.

Sustainable Income

The amount of income sufficient to meet the basic needs of a household in order to maintain their current standard of living.

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