Jargon, decoded Plain-English definitions of UK money, insurance, tax, energy, driving and visa terms. Every definition written from the regulator's own rules. Updated regularly. |
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New terms added 24 June 2026
Terms from UK insolvency, mortgage lending, energy and property data. All sourced from primary UK government and regulatory publications.
Insolvency terms
CVL (Creditors' Voluntary Liquidation)
The most common form of company insolvency. Directors propose the winding up of an insolvent company to shareholders, who vote to approve it. A licensed insolvency practitioner is appointed as liquidator, who realises the company's assets, pays creditors in a statutory order of priority, and dissolves the company. A CVL is chosen by directors proactively when a company cannot pay its debts -- contrasted with compulsory liquidation, which is imposed by a court at a creditor's request.
Source: GOV.UK -- Liquidate your company
CVA (Company Voluntary Arrangement)
A binding agreement between an insolvent company and its creditors to repay a proportion of debts over time while the company continues trading. A CVA requires approval from creditors representing at least 75% of the debt by value. Once approved, it binds all unsecured creditors. CVAs are used by companies with a viable trading model but a temporary cash flow problem. The company's directors remain in control during the CVA, unlike administration.
Administration (company)
A formal insolvency procedure in which an administrator -- a licensed insolvency practitioner -- is appointed to manage a company in financial difficulty. The administrator's primary objective is to rescue the company as a going concern; if that is not achievable, to achieve a better outcome for creditors than immediate liquidation. Administration places a moratorium on creditor action. The administrator may sell the business (a pre-pack administration), restructure it, or ultimately liquidate it if rescue is not possible.
Compulsory liquidation
A court-ordered winding up of an insolvent company, usually triggered by a creditor petitioning the court after the company has failed to pay a debt. HMRC is the most common petitioner, typically pursuing unpaid PAYE, NICs or VAT. Once a winding-up order is made, an official receiver or licensed insolvency practitioner is appointed to realise the company's assets and distribute proceeds to creditors. Directors lose control of the company immediately on the appointment of the liquidator.
Breathing Space (Debt Respite Scheme)
A government scheme that gives people in serious financial difficulty a 60-day period during which creditors cannot take enforcement action and most interest and charges are frozen. There are two types: Standard Breathing Space (60 days, accessed through a debt adviser) and Mental Health Crisis Breathing Space (lasts as long as the mental health crisis treatment plus 30 days, with no limit). During Breathing Space, the person must work with a debt adviser to find a debt solution.
Wrongful trading
A legal concept under the Insolvency Act 1986. Directors can be held personally liable for wrongful trading if they continued to incur debts when they knew or should have known there was no reasonable prospect of the company avoiding insolvent liquidation. A liquidator can apply to court for a contribution order against directors found guilty of wrongful trading. The key defence is that the director took every step to minimise loss to creditors once they knew insolvency was inevitable.
Insolvency practitioner (IP)
A licensed professional authorised to act in relation to formal insolvency procedures -- IVAs, DROs (as authorised intermediary), CVLs, CVAs, administrations and bankruptcy. Insolvency practitioners are licensed by one of four recognised professional bodies: ICAEW, ACCA, IPA or CILEX. They must be members in good standing and hold a valid licence. Only a licensed insolvency practitioner can be appointed as a liquidator, administrator or IVA supervisor.
Insolvency rate (companies)
The number of companies entering formal insolvency per 10,000 companies on the Companies House effective register in a given period. The insolvency rate is a more meaningful measure than absolute insolvency volumes because it adjusts for the growing number of registered companies. In the 12 months to May 2026, the company insolvency rate in England and Wales was 50.9 per 10,000 -- below the 2008-09 peak of 113.1 per 10,000, though the absolute number of insolvencies is similar because the registered company count has more than doubled since 2009.
Pre-pack administration
A form of administration in which the sale of a company's business and assets is arranged and agreed before the administrator is formally appointed, with the sale completing immediately or shortly after appointment. Pre-packs allow the business to continue trading with minimal disruption while still going through a formal insolvency process. They are controversial because creditors (particularly unsecured creditors) often have no input into the sale process. Pre-pack sales to connected parties (such as existing directors) are subject to additional scrutiny under the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021.
Mortgage and lending terms
MLAR (Mortgage Lending and Administration Return)
A quarterly regulatory return submitted to the FCA and PRA by all regulated mortgage lenders and administrators in the UK -- approximately 370 firms. The MLAR collects data on gross advances, outstanding balances, arrears, possessions, loan-to-value distributions and income multiples. The FCA and PRA jointly publish aggregated MLAR statistics each quarter. It is the most comprehensive source of UK mortgage lending data, covering both regulated (owner-occupied) and non-regulated (buy-to-let) mortgages by MLAR-submitting firms.
APRC (Annual Percentage Rate of Charge)
A standardised measure of the total cost of a mortgage over its full term, expressed as an annual percentage. Unlike a simple interest rate, the APRC includes not just the interest but also fees, charges and any compulsory insurance. The APRC is required to be disclosed on all mortgage illustrations and offers under the FCA's Mortgage Credit Directive rules. It allows consumers to compare the true total cost of different mortgage products on a like-for-like basis, even where upfront fees differ.
Source: FCA -- Mortgages
Gross advances (mortgages)
The total value of mortgage loans drawn down (completed) in a given period. Gross advances measure actual lending activity -- money transferred to borrowers. They differ from net lending (which subtracts repayments) and from new mortgage commitments (which are approvals that have not yet completed). Gross advances data is published quarterly by the FCA and Bank of England via the MLAR. Seasonal patterns are significant: Q4 is typically the strongest quarter as buyers rush to complete before year end.
New mortgage commitments
The value of mortgages approved and offered to borrowers but not yet drawn down (completed). New commitments are a leading indicator of future gross advances -- they represent the pipeline of lending that will convert to completions in the coming months. A rise in commitments that exceeds gross advances signals a growing lending pipeline. Published quarterly by the FCA and Bank of England via the MLAR alongside gross advances data.
Mortgage possession
The legal process by which a mortgage lender takes ownership of a property after a borrower has defaulted on their mortgage and all other options to resolve the arrears have failed. Lenders must follow the FCA's pre-action requirements before starting possession proceedings -- including contacting the borrower, considering payment arrangements and not starting proceedings within two months of the first missed payment. The Mortgage Charter (2023) added further protections, requiring lenders not to initiate forced repossession within 12 months of the first missed payment.
Mortgage Charter
A voluntary commitment signed by mortgage lenders in June 2023, covering firms representing approximately 90% of the UK residential mortgage market. Key commitments include: not initiating forced repossession within 12 months of the first missed payment (except exceptional circumstances); allowing customers to lock in a new rate up to six months ahead of their deal expiry; and allowing customers up to date with payments to switch to interest-only for six months or extend their term without an affordability reassessment. The FCA publishes quarterly data on Charter uptake.
Source: GOV.UK -- Mortgage Charter
Energy terms
SAP score
The Standard Assessment Procedure score -- the government's method for rating the energy efficiency of residential dwellings. SAP scores run from 1 (very poor) to 100+ (very efficient). The score is used to determine the EPC band: Band A = SAP 92-100+, Band B = 81-91, Band C = 69-80, Band D = 55-68, Band E = 39-54, Band F = 21-38, Band G = 1-20. SAP 2012 is the current methodology; it is expected to be replaced by the Home Energy Model (HEM) from late 2027.
EPG (Energy Price Guarantee)
A government subsidy introduced in October 2022 to limit household energy bills below the Ofgem price cap level, which would otherwise have exceeded £4,000 per year at its peak. The EPG limited typical household bills to £2,500 per year from October 2022. It was gradually phased out, with the guarantee level rising to £3,000 from April 2023 and then ending permanently on 31 March 2024. Since April 2024, household energy prices are determined solely by the Ofgem price cap with no government subsidy.
Source: GOV.UK -- Energy bills support
MEES (Minimum Energy Efficiency Standards)
Regulations that set a minimum EPC rating for privately rented properties in England and Wales. Since April 2020, landlords cannot let a property to new tenants below EPC Band E. From 1 October 2030, all privately rented properties must reach at least Band C (SAP score 69+). Landlords who let properties below the minimum standard face fines of up to £30,000 per property. Some exemptions apply where improvement costs exceed £15,000 or where the property is listed.
Source: GOV.UK -- MEES landlord guidance
Warm Homes Plan
A government programme announced in 2024 and launched in January 2026 committing £15 billion to improve the energy efficiency of UK homes. Key measures include heat pump grants of up to £7,500 (Boiler Upgrade Scheme), free insulation for low-income households, solar panel loans and a Social Housing Decarbonisation Fund. The plan aims to ensure all homes reach EPC Band C by 2030 for renters and by 2035 for owner-occupiers, reducing energy bills and cutting carbon emissions from the housing sector.
Source: GOV.UK -- Warm Homes Plan
Property and council tax terms
SDLT (Stamp Duty Land Tax)
A tax paid by buyers of property and land in England and Northern Ireland. SDLT is charged as a percentage of the purchase price, with different rates applying to different price bands. First-time buyers benefit from relief on properties up to £500,000. The rates and thresholds changed on 1 April 2025 -- the nil-rate threshold for standard residential purchases reverted from £250,000 to £125,000. Scotland uses Land and Buildings Transaction Tax (LBTT); Wales uses Land Transaction Tax (LTT).
Source: GOV.UK -- Stamp Duty Land Tax
HPI (House Price Index)
The UK House Price Index (UK HPI) is the official measure of average UK residential property prices. It is based on completed sale prices from HM Land Registry, Registers of Scotland and Land and Property Services Northern Ireland -- covering all cash and mortgage transactions. The UK HPI is published monthly with approximately a two-month lag. It uses geometric mean prices and is the most comprehensive house price measure available, unlike the Halifax or Nationwide indices which are based on mortgage approval data.
Source: HM Land Registry / ONS -- UK HPI
VOA (Valuation Office Agency)
An executive agency of HMRC responsible for valuing properties for council tax banding in England and Wales and for business rates assessments. The VOA maintains the council tax valuation list, which assigns every domestic property in England and Wales to a band (A to H) based on its estimated value on 1 April 1991. Property owners who believe their council tax band is wrong can challenge it through the VOA's Check, Challenge, Appeal process at gov.uk/council-tax-bands.
Adult Social Care (ASC) precept
An additional amount added to the council tax bill in areas where the council has responsibility for adult social care -- county councils, London boroughs, metropolitan districts and unitary authorities. The ASC precept was introduced in 2016 to allow these councils to raise additional funding specifically for adult social care services, above the standard council tax referendum threshold. In 2026-27, eligible authorities could raise an extra 2% through the ASC precept. It accounts for approximately £35 of the average Band D bill in England.
Source: GOV.UK -- ASC precept guidance
CTR (Council Tax Reduction)
A means-tested reduction in council tax bills for people on low incomes. CTR replaced Council Tax Benefit in April 2013. The government sets a national scheme for pensioners (a 100% reduction for those on Pension Credit). Working-age CTR schemes are set locally by each council and vary significantly across England -- some councils offer up to 100% reduction, others offer lower maximum discounts. To claim CTR, contact your local council directly. Scotland and Wales have separate nationally determined schemes.
Source: GOV.UK -- Council Tax Reduction
FCA and regulatory terms
FOS (Financial Ombudsman Service)
An independent body that resolves disputes between consumers and financial services firms free of charge to the consumer. If a firm rejects a complaint or fails to respond within eight weeks, the consumer can refer the complaint to the FOS. The FOS can direct a firm to apologise, correct the problem and/or pay compensation -- awards are limited to £415,000 for complaints about events from April 2022 onwards. FOS decisions are binding on the firm if the consumer accepts them. Contact: financial-ombudsman.org.uk or 0800 023 4567.
Source: Financial Ombudsman Service
Uphold rate (FOS)
The proportion of Financial Ombudsman Service decisions that find in favour of the consumer (upholding the complaint). The FOS publishes uphold rates by firm and by product category. An uphold rate significantly above the market average suggests a firm is rejecting valid complaints at the firm-level stage -- consumers whose complaints are rejected by a firm with a high FOS uphold rate may have strong grounds to escalate to the FOS. The overall FOS uphold rate in published decisions in 2026 was approximately 22.9%.
Source: FOS -- Data and insight
CMC (Claims Management Company)
A regulated business that manages claims on behalf of consumers for a fee, typically a percentage of any compensation received (commonly 25-40% including VAT). CMCs are regulated by the FCA and must be authorised to handle financial claims. Common areas include PPI claims (now largely concluded), motor finance commission claims, mis-sold investments and personal injury. Consumers do not need to use a CMC -- the FOS is free to use directly. CMC authorisation can be checked on the FCA Register at register.fca.org.uk.
