Tax Jargon Buster

Personal finance is full of terms and words that can seem confusing and complicated. 

To help you make sense of all this money-related jargon, we’ve compiled a list of some of the most common terms related to tax you are likely to come across, with plain English alternatives.

Jargon: Inheritance Tax

Plain English: A tax on the value of assets above a tax-free level that are left behind when someone dies.

Jargon: Stamp Duty

Plain English: A tax on property purchases in the UK, with different rates depending on the property's value, type and whether the buyer owns other property.

Jargon: Tax Year

Plain English: The period used for calculating and paying taxes and most state benefits, which runs from April 6th to April 5th the following year.

Jargon: Tax-Free Allowance

Plain English: The amount of income you can earn before you start paying income tax.