The world of finance is notorious for its many abbreviations, acronyms and other jargon. If you are new to investments and other aspects of financial planning it can be difficult to get to grips with some of the terminology used. To help you understand more we have compiled a glossary of some commonly used terms.

• Alternative Investments are articles of high value that retain their worth. These often include vintage wine cellars, vintage cars and art collections.
• A Benefit In Kind is an asset or service offered by employers as an alternative to cash. This often includes company vehicles and medical cover.
• Capital Gains Tax is a tax that is charged on investments. If you dispose of an asset or investment that has increased in value since purchase you will be liable to pay tax on the gain made.
• A Dividend is the return of capitol received from an investment in shares.
• Executor is the name given to people appointed to carry out the requests of a will after the will holder has passed away.
• Fit and Proper is a requirement that dealers on the stock exchange need to comply with in order to deal. Success is determined by assessing the applicant’s character and financial track record.
• Grossing Up is used to calculate the amount of tax paid when a dividend has been paid. Dividends are paid net of tax and the gross amount is required to submit on tax returns.
• High Interest Accounts are an option for earning money from your existing savings. Different accounts have different policies which may have varying waiting periods for withdrawing and transferring funds amongst other restrictions.
• Income Tax is tax that is payable on all forms of income.
• A Listed Company is a company that is able to sell its shares on the stock exchange. In order to become a listed company you need to register with company house.
• A Mortgage Protection Plan is a life insurance plan that pays the remaining balance of a mortgage on death.
• National Insurance is collected on all income declared. National insurance contributions are spent on social security benefits such as the state pension.
• Offshore Funds is the name given to investments held in a different nation to the owner’s main residence.
• Registrars are individuals or organisations that are responsible for maintaining companies share registers.
• A Share Certificate is a notification of your shareholding with a company that is received on purchase.
• Tax Codes are used by employers to calculate your tax liability on income from wages.
• Vehicle Trackers use GPS to find the exact location of vehicles. A vehicle fitted with a tracker will often have a cheaper insurance premium.
• A Waiver of Premium is when a life insurance company waives a monthly charge. This commonly happens during a period of illness and is a preventative measure to keep the insurance plan open.