Plain-English definitions of UK property abbreviations and terms: AML, KYC, SPV, SDLT, HNWI, BTL, PCL and more for international investors.
UK Property Glossary
UK property uses many abbreviations unfamiliar to international buyers. This glossary explains the terms you will encounter in transactions, tax, and compliance.
A
AML — Anti-Money Laundering
Legal framework requiring verification of the source of funds in property transactions. Applies to all buyers.
AST — Assured Shorthold Tenancy
The standard English residential tenancy — minimum six months, with statutory tenant protections.
B
BTL — Buy-to-Let
Property bought to let. BTL mortgage products differ from owner-occupier loans.
C
CDD — Customer Due Diligence
The technical name for KYC — the solicitor's standard process to verify identity and source of funds.
CGT — Capital Gains Tax
Tax on profit when selling property. As of 2026: 18% basic rate, 24% higher rate on residential disposals.
Completion
The day legal and practical transfer to the buyer occurs — after exchange.
D
Due Diligence
Full legal, physical, and financial investigation before purchase.
E
EDD — Enhanced Due Diligence
Additional checks on high-risk transactions — large sums, PEP status, or high-risk jurisdictions.
EPC — Energy Performance Certificate
Official rating of energy efficiency (A–G). Required for letting and sale.
Exchange
Binding contract stage — typically with 10% deposit paid.
F
FIG — Foreign Income and Gains
Tax regime replacing Non-Dom from April 2025. Four-year exemption on foreign income for new UK arrivals.
Freehold
Ownership of building and land indefinitely — closest to full Turkish freehold title.
G
GDV — Gross Development Value
Expected market value of a development on completion — key feasibility metric.
H
HMRC — His Majesty's Revenue and Customs
UK tax authority — equivalent to Turkey's Revenue Administration.
HNWI — High Net Worth Individual
Industry term for individuals with liquid assets typically above £1,000,000.
I
IHT — Inheritance Tax
Tax on assets transferred on death. Threshold: £325,000; 40% above.
K
KYC — Know Your Customer
Mandatory identity and source-of-funds verification by financial and legal professionals.
L
Leasehold
Right to use a property for a fixed term (often 99–999 years); land may belong to a freeholder. Most London flats are leasehold.
LLP — Limited Liability Partnership
Partnership structure with capped member liability — used in joint property investment.
LTV — Loan-to-Value
Mortgage as a percentage of property value. 75% LTV = loan of 75% of value.
M
MDR — Multiple Dwellings Relief
SDLT relief when buying more than one dwelling in a single transaction.
Mortgage
Long-term loan secured on property — typically 25 years in the UK.
MLR — Money Laundering Regulations
UK rules implementing AML obligations for property professionals.
N
Non-Dom (Non-Domiciled)
Former tax status for UK residents with domicile abroad — ended April 2025; replaced by FIG.
O
Off-Market
Property sold without public portal listing — often via agent networks only. An estimated 60% of prime London deals are off-market.
P
PCL — Prime Central London
Geographic term covering Knightsbridge, Mayfair, Belgravia, Chelsea, Kensington and similar postcodes.
PEP — Politically Exposed Person
AML category for senior officials and close associates — triggers enhanced checks.
S
SDLT — Stamp Duty Land Tax
Tax on property purchases in England — tiered rates by value and buyer profile.
Solicitor
Licensed lawyer handling conveyancing — combines roles of Turkish notary and land registry process.
SOF — Source of Funds
Documentation proving where purchase money originated — core KYC requirement.
SPV — Special Purpose Vehicle
Company set up for a single investment — often used to hold property with potential tax advantages.
SWIFT
International bank messaging system for cross-border transfers — SWIFT confirmations support AML evidence.
T
Trust
Legal structure where a trustee holds assets for beneficiaries — used in estate planning and asset protection.
U
UBO — Ultimate Beneficial Owner
Person who ultimately controls a company or trust — must be declared in KYC on corporate purchases.
UHNWI — Ultra High Net Worth Individual
Typically liquid assets of £30,000,000 or more.
Y
Yield
Annual rent as a percentage of purchase price. Gross yield = annual rent ÷ price × 100.
This glossary is for general information. Take professional advice before investing.
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