UK Property Glossary: AML, SPV, KYC, SDLT and Essential Terms Explained

UK property uses many abbreviations unfamiliar to international buyers. This glossary explains the terms you will encounter in transactions, tax, and compliance.

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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.

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B

BTL — Buy-to-Let

Property bought to let. BTL mortgage products differ from owner-occupier loans.

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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.

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D

Due Diligence

Full legal, physical, and financial investigation before purchase.

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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.

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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.

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G

GDV — Gross Development Value

Expected market value of a development on completion — key feasibility metric.

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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.

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I

IHT — Inheritance Tax

Tax on assets transferred on death. Threshold: £325,000; 40% above.

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K

KYC — Know Your Customer

Mandatory identity and source-of-funds verification by financial and legal professionals.

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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.

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M

MDR — Multiple Dwellings Relief

Former SDLT relief for buying more than one dwelling in a single transaction. Abolished for transactions completing on or after 1 June 2024.

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.

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N

Non-Dom (Non-Domiciled)

Former tax status for UK residents with domicile abroad — ended April 2025; replaced by FIG.

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O

Off-Market

Property sold without public portal listing — often via agent networks only. An estimated 60% of prime London deals are off-market.

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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.

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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.

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T

Trust

Legal structure where a trustee holds assets for beneficiaries — used in estate planning and asset protection.

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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.

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Y

Yield

Annual rent as a percentage of purchase price. Gross yield = annual rent ÷ price × 100.

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This glossary is for general information. Take professional advice before investing.

Brick & Fortune — Knightsbridge, London
+44 7990 38 1102 | investinlondon.com.tr