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.

Self-Invested Personal Pensions (SIPPS)

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 63 and nine months for women until 2018, when it will equalise at 65 for both genders. The retirement age will reach 66 by 2020 and 68 by 2028. The full basic state pension is £122.30 per week. The basic state pension increases every year by whichever of these is the highest:

  • Earnings - the average percentage growth in wages (Great Britain)
  • Prices - the percentage growth in prices in the UK as measured by the Consumer Price Index
  • 2.5%

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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