Money Terms in Plain English.

F

Family income benefit

Life insurance that pays your family a regular income instead of a lump sum.

In plain English:Life insurance that pays your family a monthly income until the policy ends, rather than one big lump sum. It's often cheaper.

MoreLess about Family income benefit

It often costs less than a lump sum policy because what it would pay falls as the policy nears its end.

The income can be set to rise with inflation. Some people find a monthly income easier to plan with than a lump sum.

For example: A parent buys a policy paying £2,000 a month until their youngest turns 21. If they die when the child is 10, it pays for 11 years.

Family investment company (FIC)UK

A private company set up to hold a family's investments.

In plain English:A private company set up to hold family money. Parents keep control while children own shares and can get some of the growth.

MoreLess about Family investment company (FIC)

Growth on shares owned by the children can be outside the parents' estate for Inheritance Tax. The company pays Corporation Tax on its profits.

Setting one up and running it costs money, so it's usually used for large sums. Advice is important.

For example: Parents put £1 million into a family company, keeping voting shares while their children own shares that get most of the growth.

Family office

A private firm that manages one very wealthy family's money.

In plain English:A private firm that looks after the investments, taxes and money matters of one very rich family.

MoreLess about Family office

They're usually for families with very large fortunes. Staff can include investment managers, lawyers and accountants.

They may also handle things like charity giving and training the next generation to manage money.

For example: A family that sold its business sets up a family office to manage the money and run its charity.

See also: Wealth manager

Faster PaymentsUK

The UK system that moves money between accounts in seconds.

In plain English:The system that sends money between UK bank accounts in seconds, any time of the day or night.

MoreLess about Faster Payments

Payments up to a limit can be sent 24 hours a day, every day. Banks set their own limits, and big amounts may use another system.

Once sent, payments are hard to stop, which scammers use. Check details carefully before sending.

For example: Someone pays their friend back for dinner using their banking app, and the money arrives in seconds.

Article inside Foliopeak: How Money Moves: Faster Payments, Bacs and CHAPS

FATCA (Foreign Account Tax Compliance Act)

A US law making banks worldwide report accounts held by US citizens.

In plain English:A US law that makes banks around the world tell the US tax office about accounts held by American citizens.

MoreLess about FATCA (Foreign Account Tax Compliance Act)

FATCA stands for Foreign Account Tax Compliance Act. Firms ask new customers about US citizenship and tax status.

US citizens living in the UK usually have to file US tax returns too. Some UK investments, like funds, can be taxed harshly in the US.

For example: A US citizen living in London is turned down by a UK platform because it doesn't take US taxpayers.

See also: Tax residence

FCA (Financial Conduct Authority)UK

The UK regulator of financial firms.

In plain English:The Financial Conduct Authority. It sets rules for banks, lenders and investment firms in the UK, and checks they follow them.

MoreLess about FCA (Financial Conduct Authority)

FCA stands for Financial Conduct Authority. It sets rules, checks firms follow them and can fine or close firms that don't.

Using an authorised firm usually means access to the Financial Ombudsman Service and, often, FSCS cover.

For example: Before investing, someone checks the FCA register and finds the firm isn't listed, which means it's likely a scam.

Article inside Foliopeak: What Actually Protects Your Money

Federal Reserve (the Fed)

The central bank of the United States, whose interest rate moves markets worldwide.

In plain English:The central bank of the United States. When it changes interest rates, markets all over the world feel it.

MoreLess about Federal Reserve (the Fed)

It's often called the Fed. It has two goals: stable prices and as many people in work as possible.

When the Fed changes interest rates, it can move UK share prices and the pound, even though the Bank of England sets UK rates.

For example: The Fed raises interest rates, the dollar rises against the pound, and US shares held by UK investors are worth more in pounds.

See also: Bank of England

Fiat money

Money backed by trust in the government, not by gold.

In plain English:Money like the pound or dollar, which is worth something because the government says so and people trust it, not because it's backed by gold.

MoreLess about Fiat money

Fiat comes from Latin for "let it be done". The UK left the gold standard in 1931.

Because governments can create more of it, its value depends on trust and good management. Too much can lead to high inflation.

For example: A £20 note isn't backed by gold, but shops accept it because everyone trusts the pound.

See also: Gold standard

Fiduciary duty

A legal duty to act in someone else's best interest when looking after their money.

In plain English:When someone looks after your money, like a trustee or pension fund, the law says they must put your interests first.

MoreLess about Fiduciary duty

It means putting the other person's interest first, avoiding conflicts and not making secret profits. Breaking it can mean being held personally responsible.

Financial advisers have similar duties under FCA rules.

For example: A trustee can't sell trust property to their own company at a cheap price, because that would break their fiduciary duty.

See also: Trustee

Fifty-thirty-twenty rule

A simple budget: half on needs, some on wants and the rest on saving.

In plain English:A simple way to budget: about half your take-home pay on needs, some on wants, and the rest on saving or paying off debt.

MoreLess about Fifty-thirty-twenty rule

It's about half on needs, 30% on wants and 20% on saving or paying off debt.

It can be adjusted to fit, for example if housing costs are high. Tracking spending for a month or two first shows where your money really goes.

For example: Take-home pay of £2,000 a month: £1,000 for needs, £600 for wants and £400 for saving.

FIG regime (foreign income and gains)UK

The rule letting new arrivals to the UK pay no UK tax on foreign income for their first years here.

In plain English:If you move to the UK after living abroad for many years, you don't pay UK tax on money you earn abroad for your first few years.

MoreLess about FIG regime (foreign income and gains)

It started in April 2025. It's for people who move to the UK after 10 years of not living here, and lasts for their first 4 years as a UK resident. Each year you claim, you lose your Personal Allowance and capital gains tax exempt amount.

It's often called the FIG regime. After four years, worldwide income and gains are taxed in the UK in the usual way.

Money brought into the UK during the four years is still free of UK tax if covered by the regime.

For example: Someone moves to the UK after living in Australia for 15 years. They claim the regime and pay no UK tax on their Australian rental income for four years.

See also: Non-dom (non-domiciled)

Final declaration (Making Tax Digital)UK

The yearly return that confirms your tax under Making Tax Digital.

In plain English:Under Making Tax Digital, this is the last step each year, where you confirm your income and tax are right. It replaces the old tax return.

MoreLess about Final declaration (Making Tax Digital)

It's due by 31 January after the tax year ends, as a Self Assessment return is.

It replaces the usual Self Assessment return for people in Making Tax Digital. You can add other income here, like savings interest.

Software usually does the adding up from your quarterly updates.

For example: A landlord sends four quarterly updates through their software during the year, then makes a final declaration after it ends.

Article inside Foliopeak: Making Tax Digital, and When It Reaches You

Final salary and career average

Two kinds of pension that promise an income based on your pay.

In plain English:Both are pensions that promise you an income for life. Final salary pays based on your pay at the end, career average on your pay over all your years.

MoreLess about Final salary and career average

Many final salary schemes have closed. Career average schemes are now common in the public sector.

Pay rises late in a career help more in final salary schemes. In career average schemes, every year counts.

For example: Someone in a career average scheme earns more each year. Their pension builds from each year's pay, raised with inflation, not just the last year.

Article inside Foliopeak: Pensions: SIPPs, Workplace Pensions, and SSAS

Financial adviser

A regulated professional who recommends what to do with your money.

In plain English:A trained, regulated professional who looks at your money and recommends what you should do. They charge a fee.

MoreLess about Financial adviser

They must explain how they're paid before giving advice. Commission on investments was banned in 2013, so you pay a fee.

Check an adviser on the FCA register. You can complain to the Financial Ombudsman Service if their advice was wrong for you.

For example: Someone pays a fixed fee to an independent financial adviser for help deciding what to do with a pension when they retire.

Financial association

A link on your credit file to someone you share credit with.

In plain English:If you have a joint account or loan with someone, your credit files are linked. Lenders may look at their record too.

MoreLess about Financial association

It's often made with a partner, but also with a friend, a family member or an ex. It isn't made just by living together.

If someone you're linked with has a poor credit history, it can affect your applications.

For example: After splitting up, someone closes a joint account with an ex and asks each credit reference agency to remove the link.

Article inside Foliopeak: Joint Accounts and Joint Mortgages: Whose Share Is Whose

Financial Ombudsman ServiceUK

A free service that settles complaints against financial firms.

In plain English:If a bank or money firm won't fix your complaint, this free service can look at it and make the firm put things right.

MoreLess about Financial Ombudsman Service

You usually need to complain to the firm first and give it eight weeks. Its decisions are binding on the firm if you accept them.

It can order a firm to put things right and pay compensation up to a limit.

For example: A bank refuses to refund money lost to a scam. The customer takes the complaint to the Ombudsman, which orders a refund.

Article inside Foliopeak: What Actually Protects Your Money

Financial order (divorce)

A court order that sets how money is split on divorce.

In plain English:When a couple divorces, a court order sets out how their money, home and pensions are split. Without one, either can make claims later.

MoreLess about Financial order (divorce)

A clean break order ends all financial ties, so neither side can claim later. A family lawyer or mediator can help agree terms.

Pensions can be shared or taken into account when splitting things up.

For example: A couple divorce without a financial order. Ten years later one wins money, and the other makes a claim against it.

Financial Policy Committee (FPC)UK

The Bank of England committee that watches for risks to the whole financial system.

In plain English:A group at the Bank of England whose job is to spot dangers to banks and lenders as a whole, and step in before they cause a crisis.

MoreLess about Financial Policy Committee (FPC)

It was set up after the 2008 crisis. It works alongside the Monetary Policy Committee, which sets Bank Rate, and the PRA, which checks each bank day to day.

For example: The FPC limits how many new mortgages a lender can give at a high multiple of the borrower's income.

Article inside Foliopeak: Systemic Risk

Financial sanctions

Rules that block dealings with certain countries, companies or people.

In plain English:Rules that ban doing business with certain countries, companies or people, often to put pressure on governments.

MoreLess about Financial sanctions

The UK list is kept by the Treasury's Office of Financial Sanctions Implementation. Sanctions often target countries at war, or people linked to terrorism or crime.

A name that's similar to someone on the list can trigger checks, which may delay a payment while the bank confirms it's not them.

For example: A payment to a supplier is held for a day because the company's name is close to one on the sanctions list. The bank checks and lets it through.

See also: Anti-money laundering checks (AML)

Finfluencer

Someone who posts about money and investing on social media.

In plain English:Someone who talks about money on social media. Some are helpful, but many aren't qualified, and some are paid to push things.

MoreLess about Finfluencer

Posts about "guaranteed" returns, crypto tips or trading courses are common warning signs. Paid posts must be clearly labelled as adverts.

Some finfluencers have been charged by the FCA for promoting unauthorised trading schemes.

For example: An influencer with a big following posts about a trading app that pays them for every sign-up, without saying they're paid.

Fintech

Companies using apps and software to offer banking, payments or investing.

In plain English:Companies that use apps and technology to offer money services, like app-only banks, payment apps and investing apps.

MoreLess about Fintech

They often make things like budgeting, switching and investing quicker and cheaper. Some are big banks now; others are small startups.

If a fintech fails, how quickly you get your money back depends on whether it's a bank, an e-money firm or an investment firm.

For example: Someone uses a fintech app to see all their bank accounts in one place, linking them through Open Banking.

Article inside Foliopeak: What Actually Protects Your Money

FIRE

Saving and investing enough that working becomes a choice.

In plain English:Short for financial independence, retire early. People save a large part of their pay and invest it, so they can stop working much sooner.

MoreLess about FIRE

A common target is 25 times yearly spending, linked to the idea of taking about 4% a year. Some aim to live very cheaply; others just want work to be optional later.

Market falls early in retirement, inflation and long lifespans can make a pot run out sooner than planned.

For example: Someone spending £30,000 a year might aim for a pot of about £750,000, twenty-five times their spending.

Article inside Foliopeak: FIRE: The Maths Behind "Retire Early"

Fire sale

Selling things in a hurry at low prices to raise cash fast.

In plain English:When someone has to sell fast, they take whatever price they can get. That can drag prices down for everyone else who owns the same thing.

MoreLess about Fire sale

The name comes from shops selling off goods damaged in a fire. In markets it is one of the main ways trouble at one firm spreads to others.

For example: In 2022, some pension funds had to sell gilts fast to raise cash, pushing gilt prices down further until the Bank of England stepped in.

Article inside Foliopeak: Systemic Risk

First Homes schemeApplies in EnglandEngland

New homes in England sold to first-time buyers at a discount of at least a third off.

In plain English:New homes in England sold to first-time buyers with at least a third off the price, as long as they stay sold at a discount in future.

MoreLess about First Homes scheme

The discount is at least 30% off the market price.

Buyers usually must be first-time buyers, have a household income below a limit and have a local connection. Councils can set extra rules, such as for key workers.

The home must be your main home. Selling later is at the same discount, so you can't cash in the discount.

For example: A nurse buys a new flat valued at £250,000 under First Homes at a discount, and when they sell, the next buyer gets the same discount.

Article inside Foliopeak: Buying a Home: From Offer to Keys

First-time buyer reliefApplies in England, Northern IrelandEnglandN. Ireland

Lower stamp duty for people buying their first home.

In plain English:If you've never owned a home anywhere, you pay less stamp duty, or none, when you buy your first one below a set price.

MoreLess about First-time buyer relief

There's no Stamp Duty Land Tax on the first £300,000 and 5% on the rest, if the price is £500,000 or less. Above that, the normal rates apply to the whole price.

Both buyers must be first-time buyers to claim it. Scotland and Wales have their own taxes and rules.

For example: On a £400,000 first home, stamp duty is £5,000 instead of £10,000.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Stamp Duty Land Tax

Fiscal drag

More tax being paid because tax thresholds stay frozen while pay rises.

In plain English:When tax thresholds stay the same but pay goes up, more people end up paying tax, or paying higher rates, without the tax rates going up.

MoreLess about Fiscal drag

The Personal Allowance and the basic rate limit are frozen until 5 April 2031.

It's sometimes called a "stealth tax" because no rate goes up, yet people pay more. Inflation makes it stronger.

It can also pull people into losing child benefit or the personal allowance taper as pay rises.

For example: Someone's pay rises with inflation each year, but the higher rate threshold stays the same, so more of their pay is taxed at the higher rate.

Article inside Foliopeak: Inflation - the Quiet One

Fiscal policy

How the government uses tax and spending to steer the economy.

In plain English:How the government uses taxes and spending to manage the economy, like cutting taxes to boost spending.

MoreLess about Fiscal policy

It works alongside monetary policy, which is the Bank of England's job of setting interest rates. Spending more or taxing less can boost the economy; the opposite can cool it.

The Office for Budget Responsibility checks the government's sums and forecasts.

For example: In a recession the government cuts VAT for a while to encourage spending.

Article inside Foliopeak: What Changed in the Budget

Fixed and variable costs

Costs that stay the same however much a business sells, and costs that rise with sales.

In plain English:Fixed costs, like rent, stay the same however much a business sells. Variable costs, like materials, go up as it sells more.

MoreLess about Fixed and variable costs

Some costs are a mix, such as a phone bill with a fixed charge plus extra calls.

A business with high fixed costs makes more profit when sales rise, but loses more when sales fall.

For example: A café pays £2,000 a month in rent whatever it sells, and about £1 in ingredients for every coffee.

See also: Break-even point

Fixed income

Investments, mainly bonds, that pay a set amount of interest on a timetable.

In plain English:Investments, mostly bonds, that pay you a set amount of interest on set dates.

MoreLess about Fixed income

The interest is fixed, but its price moves with interest rates and the borrower's credit. Holding a bond to the end means you get its face value back if the borrower pays.

Fixed income is often used to balance out shares in a portfolio, as it tends to move less.

For example: A retired couple holds some gilts paying fixed interest twice a year for steady income.

Article inside Foliopeak: Bonds

Fixed-rate mortgage

A mortgage whose interest rate stays the same for a set time.

In plain English:Your interest rate stays the same for a set number of years, so your monthly payment doesn't change. When it ends, you'll usually need a new deal.

MoreLess about Fixed-rate mortgage

Two and five-year fixes are most common. Fixing gives certainty but means you miss out if rates fall.

Ending a fix early usually means an early repayment charge.

For example: Fix at 4.5% for five years and your monthly payment stays the same for those five years, even if Bank Rate rises.

Article inside Foliopeak: Fixes, Trackers, and What Overpaying Really Does

Fixed-term savings

A savings account that pays a set rate if you leave the money alone for a set time.

In plain English:You promise to leave your money in for a set time, like a year, and get a fixed interest rate. You often can't take it out early.

MoreLess about Fixed-term savings

Terms range from a few months to five years or more. Longer terms often pay more, but not always.

Money can be stuck if you need it in an emergency, so keep some in easy access savings.

For example: Someone puts £10,000 in a two-year fixed account and gets a set interest rate, but can't touch the money until the end.

Article inside Foliopeak: Savings Accounts: Comparing Them ProperlyGame: Runway

Flash crash

A sudden, very fast fall in prices that often recovers within minutes.

In plain English:Prices drop sharply in a few minutes, then bounce back almost as fast. Someone selling at that moment can get a terrible price.

MoreLess about Flash crash

Exchanges now use circuit breakers to pause trading when prices move too far, too fast.

Stop-loss orders can go off in one and sell at the bottom, even if the price recovers soon after.

For example: In May 2010, US shares fell sharply in a few minutes, then recovered most of the fall within the hour.

Flat rate expensesUK

A fixed amount you can claim tax relief on for work clothing or tools.

In plain English:If you have to buy or wash uniform, or buy tools for your job, you can claim tax relief on a set amount each year, without receipts.

MoreLess about Flat rate expenses

You can claim online with HMRC or by phone. It can be backdated for up to four tax years.

If your actual costs are higher, you can claim those instead, with receipts.

For example: A nurse who washes their own uniform claims the flat rate expense for their job, which lowers the tax they pay each month.

Flexible ISAUK

An ISA that lets you take money out and put it back in the same year.

In plain English:With this type of ISA, you can take money out and put it back later in the same tax year without using up more of your allowance.

MoreLess about Flexible ISA

Cash ISAs are most often flexible. It must be put back in the same tax year, or the space is lost.

Check with your provider, as the rules on what counts can differ.

For example: Someone takes £2,000 from their flexible cash ISA in June for a car repair and puts it back in November without using more of their allowance.

Article inside Foliopeak: The ISA Allowance, Explained

FOMO (fear of missing out)

The worry that everyone else is getting rich and you'll miss out if you don't act now.

In plain English:The fear of missing out. It's the urge to jump in because others seem to be making money, which can lead to buying at the top.

MoreLess about FOMO (fear of missing out)

FOMO stands for "fear of missing out". It often rises during booms, such as crypto in 2021.

Sticking to a plan, such as investing a set amount each month, helps stop FOMO driving choices.

For example: After seeing friends brag about gains, someone buys a meme coin at its peak and loses most of their money the next month.

Article inside Foliopeak: Why Good Plans Get Abandoned

Foreign exchange fee

A charge for changing pounds into another currency to buy investments.

In plain English:To buy shares priced in dollars, your platform swaps your pounds for dollars and takes a small cut. It does the same when you sell.

MoreLess about Foreign exchange fee

It's separate from the foreign transaction fee on a card, and on each trade it can cost more than the dealing charge.

Some platforms let you hold a dollar balance, so dividends and sale money aren't changed back to pounds each time.

For example: Someone buys £2,000 of US shares on a platform with a 0.5% fee. They pay £10 to change the money, and about the same again when they sell.

Article inside Foliopeak: US Shares and Foreign Dividends: W-8BEN, Withholding Tax and Currency

Foreign transaction fee

A charge some cards add when you spend in another currency.

In plain English:A charge some cards add when you pay in a foreign currency. Some cards don't charge it, which can save money abroad.

MoreLess about Foreign transaction fee

Charges around 3% are common. Some cards charge nothing, which can save money on holidays and online shopping from abroad.

Being asked to pay in pounds instead of local currency abroad can cost more, as the exchange rate is often poor.

For example: Someone spends £1,000 abroad on a card with a 3% fee and pays an extra £30.

Forex (foreign exchange)

The worldwide market where currencies are bought and sold.

In plain English:The global market where money in one currency is swapped for another, like pounds for dollars. It's the biggest market in the world.

MoreLess about Forex (foreign exchange)

Forex is short for foreign exchange. It trades around the clock on weekdays, mostly between banks.

Small moves in currencies are made bigger with leverage, so losses can grow fast. Scammers often offer forex "signals" or managed accounts.

For example: Someone opens a forex trading account with £1,000 and borrows to trade. A sharp move in the dollar wipes out the account in a day.

See also: Exchange rate

Fork (crypto)

A change to a blockchain's rules, which can split it into two separate coins.

In plain English:When a blockchain's rules change. If not everyone agrees, it can split into two separate coins.

MoreLess about Fork (crypto)

A soft fork changes the rules but keeps working with the old version, so the chain doesn't split.

For tax, coins received from a fork have a cost of zero, shared with the original coin.

For example: Someone who held 1 bitcoin in 2017 also got 1 Bitcoin Cash when the chain split.

Article inside Foliopeak: Cryptocurrency

Fractional shares

Part of a single share.

In plain English:A small piece of one share. It lets you invest in expensive shares even if you only have a little money.

MoreLess about Fractional shares

They make expensive shares available to people with small amounts to invest. You get your share of any dividends.

Some platforms hold the fractions for you, which can make moving them to another platform harder.

For example: A share costs £400, and someone buys £50 worth, owning one-eighth of a share.

Free cash flow

The cash a business has left after paying its costs and investing in itself.

In plain English:The cash left over after a business has paid its running costs and invested in things it needs. It can be used for dividends or paying debts.

MoreLess about Free cash flow

A company can report a profit while running short of cash, so this is a useful check. It can swing a lot if the business invests heavily in one year.

Investors often compare it with the share price, a measure called the free cash flow yield.

For example: A company takes in £10 million from its business and spends £4 million on new equipment. Its free cash flow is £6 million.

Article inside Foliopeak: Stocks, Shares and Equities

Free float

The shares in a company that are available to trade on the stock market.

In plain English:The shares in a company that ordinary investors can buy and sell, not counting those held by founders or the government.

MoreLess about Free float

A company with a small free float may have shares that are harder to buy and sell. Weighing by free float means index funds don't need to buy shares that aren't for sale.

Big shareholders selling can change it.

For example: A founder owns 60% of a company and keeps their shares. Only the other 40% counts in the free float.

See also: Market capitalisation

Free school mealsUK

Free lunches at school for children in some families.

In plain English:Children in families on certain benefits or low incomes can get free lunches at school. All infants in England get them.

MoreLess about Free school meals

In England every family on Universal Credit has qualified since September 2026. All infants in England and all primary pupils in Wales get them anyway.

Families usually have to apply to the school or council. Even when meals are free for every pupil, applying can bring the school extra money.

Some areas also offer help with uniforms or holiday food schemes.

For example: A family on Universal Credit in England applies through their council, and their secondary school children get free lunches.

Freehold and leasehold

Owning a home and its land outright, or owning it for a set number of years.

In plain English:With freehold, you own the building and the land forever. With leasehold, you own the home for a set number of years and pay a freeholder.

MoreLess about Freehold and leasehold

Most flats in England and Wales are leasehold. A lease with fewer years left can make a flat harder to sell or mortgage.

Leaseholders can often extend their lease or buy the freehold with neighbours, though it can be costly. New laws are changing some leasehold rules.

For example: Someone buys a flat with 85 years left on the lease and pays a yearly service charge to the freeholder for repairs to the building.

Article inside Foliopeak: Buying a Home: From Offer to Keys

Frontier markets

Countries with smaller, riskier stock markets than emerging markets.

In plain English:Countries whose stock markets are even smaller and riskier than emerging markets, like Vietnam or Nigeria.

MoreLess about Frontier markets

Investing is often through specialist funds. Rules for foreign investors and how easily money can be taken out vary a lot.

Political changes or currency problems can cause big losses quickly.

For example: A frontier markets fund holds shares in banks in Vietnam and phone companies in Kenya.

See also: Emerging markets

FSCSUK

The scheme that pays back your money if a UK bank or investment firm fails.

In plain English:If a UK bank, building society or investment firm goes bust, this scheme pays back your money, up to a limit for each person, at each firm.

MoreLess about FSCS

It's free for customers, and you don't usually need to apply for bank deposits. Brands that share one banking licence share one limit.

It doesn't cover losses from investments going down in value, only a firm failing.

For example: If a bank fails, £120,000 per person is protected, so a couple's joint account is covered up to £240,000.

Article inside Foliopeak: What Actually Protects Your Money

FTSE 100UK

An index of the hundred biggest companies on the London Stock Exchange.

In plain English:A list of the hundred largest companies on the London Stock Exchange. When the news says the stock market rose, it often means this.

MoreLess about FTSE 100

FTSE comes from the Financial Times and the London Stock Exchange, which created it. It includes big oil, mining, bank and drug companies.

Because many earn abroad, a fall in the pound can lift the index. It's often used as a rough guide to UK shares.

For example: When the pound falls against the dollar, the FTSE 100 often rises, because many of its companies earn in dollars.

Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs

FTSE 250UK

An index of the next biggest companies on the London Stock Exchange.

In plain English:A list of the next two hundred and fifty biggest companies in London after the FTSE hundred. They're more focused on the UK.

MoreLess about FTSE 250

Its companies include housebuilders, retailers and financial firms. It's often seen as a better guide to the UK economy than the FTSE 100.

It tends to swing more than the FTSE 100.

For example: When UK spending falls, the FTSE 250 often drops more than the FTSE 100, because its companies rely more on UK customers.

FTSE All-ShareUK

An index covering most companies on the London Stock Exchange.

In plain English:An index that covers almost every company on the London Stock Exchange, big and small, giving a wider picture of UK shares.

MoreLess about FTSE All-Share

It includes around 600 companies. Funds tracking it give you a spread across nearly all of the UK's listed shares.

Because big companies make up most of its value, it moves a lot like the FTSE 100.

For example: A UK equity fund compares its returns with the FTSE All-Share to show whether it did better than the market.

FUD (fear, uncertainty and doubt)

Slang for news or talk that makes people worried about an investment.

In plain English:Short for fear, uncertainty and doubt. Crypto fans use it for news or talk that makes people nervous, sometimes to dismiss real warnings.

MoreLess about FUD (fear, uncertainty and doubt)

FUD stands for "fear, uncertainty and doubt". The term is older than crypto and was used in business and politics.

Calling something FUD doesn't make it untrue. A good check is whether the worry comes from reliable sources.

For example: A news report says a crypto exchange may be short of money. Fans call it FUD, but a week later the exchange stops withdrawals.

Fuel benefit chargeUK

Tax on free fuel an employer gives you for personal trips in a company car.

In plain English:If your employer pays for fuel you use for personal trips in a company car, you pay extra tax on it, often more than the fuel costs.

MoreLess about Fuel benefit charge

It's worked out from the car's CO2 rating and a fixed amount set each year, whatever fuel you actually use. Paying back all private fuel by the deadline removes it.

Electric cars have no fuel benefit charge, as electricity isn't treated as fuel.

For example: Someone who drives few personal miles works out that paying their employer back for private fuel costs less than the fuel benefit charge.

Article inside Foliopeak: Bonuses, Overtime and Benefits: What Lands in Your Pay

Fuel dutyUK

A tax on every litre of petrol and diesel, with VAT added on top.

In plain English:A tax built into the price of every litre of petrol and diesel you buy. VAT is then added on top of that.

MoreLess about Fuel duty

It's a fixed amount per litre, not a percentage, so it doesn't rise with the price of fuel. It's been frozen for many years.

Electric cars don't pay it, which is one reason a pay-per-mile charge for them is planned.

For example: When fuel prices rise, the duty per litre stays the same, but the VAT on top grows.

See also: VAT (Value Added Tax)

Full expensingUK

Lets a company take the whole cost of new equipment off its profit at once.

In plain English:When a company buys new equipment, it can take the whole cost off its profit in the year it buys it, which cuts its tax bill.

MoreLess about Full expensing

It's meant to encourage businesses to invest. When the item is sold, the money received can be taxed.

Second-hand equipment doesn't qualify. Some items with a long life get a lower rate instead.

For example: A manufacturer buys a £500,000 machine and takes the full cost off that year's profits, cutting its Corporation Tax.

Article inside Foliopeak: Depreciation and Capital Allowances: How Equipment Comes Off Your Tax

Fund

Many people's money pooled and invested together.

In plain English:Lots of people put their money together and a manager invests it in many different things. You own a slice of everything.

MoreLess about Fund

Funds can be actively managed, where a manager picks investments, or passive, tracking an index. They come in forms such as unit trusts, OEICs and investment trusts.

Charges are taken from the fund, so check the ongoing charge.

For example: Someone puts £100 a month into a global fund that holds shares in thousands of companies.

Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs

Funded childcare hoursUK

Free hours of childcare paid for by the government.

In plain English:The government pays for a certain number of hours of childcare each week for eligible children. It varies by age and by nation.

MoreLess about Funded childcare hours

In England, working parents can get up to 30 hours a week in term time for children from nine months old.

You usually need to reapply every three months to show you're still working. Providers may charge for extras such as meals and nappies.

Some help is available for younger children in families on certain benefits.

For example: Working parents in England get funded hours for their one-year-old at a nursery, then pay for the extra hours they use.

Funeral Expenses PaymentApplies in England, Wales, Northern IrelandEnglandWalesN. Ireland

Government help with funeral costs for people on certain benefits.

In plain English:If you're on certain benefits and need to pay for a funeral, the government can help with some of the costs.

MoreLess about Funeral Expenses Payment

It can pay for things like burial or cremation fees and some other costs, with a limit on extras. You must claim within six months of the funeral.

It's for the person responsible for the funeral, such as the partner or a close relative.

For example: A daughter on Universal Credit arranges her father's funeral and gets help with the cremation fees.

Article inside Foliopeak: When Someone Close Dies: The Money in the First Months

Funeral plan

A plan you pay for in advance to cover your funeral.

In plain English:You pay for your funeral in advance, all at once or monthly, so your family doesn't have to. These plans are now regulated.

MoreLess about Funeral plan

Providers have had to be authorised by the FCA since 29 July 2022.

Plans differ in what they cover, such as burial or cremation and the type of service. Check what isn't included.

Before regulation, some plans failed and people lost money. Now providers must meet FCA rules.

For example: Someone pays for a funeral plan in monthly payments over five years. Their family won't have to pay for the parts it covers.

FurloughUK

Being kept on but not working during Covid, with the government paying most of your wages.

In plain English:During Covid, many workers were kept on by their employers but didn't work, and the government paid most of their wages.

MoreLess about Furlough

It ran from 2020 to 2021, and furlough pay was taxed like normal pay.

Employers could choose to top up pay to 100%. Millions of jobs were supported this way.

Some fraud was found later, and HMRC asked employers to pay back money claimed wrongly.

For example: A restaurant worker was furloughed during lockdown and got most of their usual pay while the restaurant was closed.

Furnished holiday lettingsUK

Old tax rules for holiday lets that have now ended.

In plain English:Holiday lets used to have special, better tax rules. Those rules have ended, so they're now taxed like other rented homes.

MoreLess about Furnished holiday lettings

Before April 2025, these lets could claim things like capital allowances on furniture and some Capital Gains Tax reliefs.

Now owners report them alongside other property income. Some reliefs are still allowed for sales on transition rules.

For example: Someone who lets a cottage to tourists can no longer claim the old holiday let tax breaks from April 2025.

Article inside Foliopeak: Letting Out Property: Section 24 and What You Can Deduct

Further advance

Borrowing more from your current mortgage lender.

In plain English:Borrowing more money from your existing mortgage lender, for example to pay for building work.

MoreLess about Further advance

It can be cheaper than a personal loan, but it's secured on your home and can last as long as your mortgage, adding more interest overall.

The lender will check you can afford it, as with any mortgage.

For example: A couple borrows £20,000 more from their mortgage lender to build an extension, at a separate fixed rate.

Futures

Contracts to buy or sell something at a set price on a future date.

In plain English:A deal to buy or sell something, like oil or shares, at a set price on a set date in the future. They're often used to bet on prices.

MoreLess about Futures

They're traded on exchanges. Each contract has a set size, and you only pay a deposit, called margin, to start.

A farmer or airline can use them to fix future prices. Traders can lose much more than the margin.

For example: An airline buys fuel futures to fix the price it pays for fuel six months from now.