Money Terms in Plain English.

G

Gambling block

A banking app setting that stops your card paying gambling sites.

In plain English:A setting in many banking apps that stops your card being used on gambling sites, to help people who want to stop.

MoreLess about Gambling block

It can be a big help for people who struggle with gambling. Some banks also block payments to crypto sites or let you set spending limits.

Self-exclusion schemes such as GamStop work alongside it, blocking gambling sites and apps.

For example: Someone turns on the gambling block in their banking app. A week later, when they try to place a bet, the card is declined.

Gambling winnings and taxUK

Gambling and lottery winnings aren't taxed in the UK, but what they earn afterwards can be.

In plain English:You don't pay tax on gambling or lottery wins in the UK. But if you then save or invest the winnings, any interest or gains can be taxed.

MoreLess about Gambling winnings and tax

Professional gamblers are treated the same way. Spread betting gains are also usually tax-free, for the same reason.

Losses can't be set against other income or gains.

For example: Someone wins £50,000 on the lottery. They pay no tax on the win, but interest on it in a savings account is taxed as usual.

GAP insurance

Insurance that covers the gap between a written-off car's value and what you paid or owe.

In plain English:If your car is written off, ordinary insurance pays what it's worth now. Gap insurance covers the difference between that and what you paid or still owe.

MoreLess about GAP insurance

There are different types: some pay back what you paid, others what you owe on finance, or the cost of a new car.

Under the rules, dealers must wait a couple of days before selling it, giving you time to shop around.

For example: A car bought for £20,000 is written off two years later. Normal insurance pays £13,000, and gap insurance pays the £7,000 difference.

Article inside Foliopeak: Car Finance: PCP, Hire Purchase and Leasing

Garden leave

Being paid through your notice period but told not to work.

In plain English:You're still employed and paid during your notice period, but told to stay home and not work, often so you can't take clients to a rival.

MoreLess about Garden leave

It's often used to stop staff taking clients or knowledge to a competitor. Your contract usually has to allow it.

You must still follow your contract, so starting a new job early can be a breach.

For example: A salesperson resigns to join a rival. Their employer puts them on three months' garden leave, fully paid, so they can't contact clients.

Article inside Foliopeak: Made Redundant: What an Employee Is Owed, How It Is Taxed, and Where the Money Can Go

Gas fee

The fee paid to have a transaction processed on a blockchain such as Ethereum.

In plain English:A fee you pay to the people who run a blockchain like Ethereum to get your transaction processed. It goes up when the network is busy.

MoreLess about Gas fee

It pays the people or computers checking transactions. "Gas" is the measure of how much computing a transaction needs.

Fees can be much higher than the amount being sent at busy times. Some other blockchains have far lower fees.

For example: Someone sends £20 of a token on a busy day and pays a £15 gas fee.

Article inside Foliopeak: Cryptocurrency

Gazumping and gazundering

A seller taking a higher offer, or a buyer cutting theirs, late in a sale.

In plain English:Gazumping is when a seller accepts a higher offer after agreeing to yours. Gazundering is when a buyer cuts their offer just before the deal.

MoreLess about Gazumping and gazundering

It's a risk because English and Welsh sales aren't binding until exchange, which can take months. Scotland's system makes it less common.

Moving quickly to exchange, or agreeing a lock-out period with the seller, can lower the risk.

For example: A buyer has paid for a survey and legal work, then the seller accepts a higher offer from someone else the week before exchange.

GDP (gross domestic product)

The total value of everything an economy produces.

In plain English:The total value of everything a country makes and sells in a year. When it grows, the economy is growing.

MoreLess about GDP (gross domestic product)

GDP stands for gross domestic product. It's usually shown as the change from one quarter or year to the next.

GDP per person divides it by the population, which shows living standards better. It doesn't count unpaid work or wellbeing.

For example: The UK's GDP grew by 0.5% in a quarter, meaning the economy produced slightly more than in the quarter before.

Gearing

Borrowing to invest more, which makes gains and losses bigger.

In plain English:Using borrowed money to invest more than you have. If things go up, you gain more. If they go down, you lose more.

MoreLess about Gearing

It can also mean how much a company borrows compared with what its shareholders own.

A trust with high gearing can do very well in rising markets and badly in falling ones.

For example: An investment trust with £100 million of assets borrows £10 million to invest. If its investments rise 10%, its shareholders' slice rises about 11%.

Article inside Foliopeak: Leverage - Borrowing to Invest

Gender pension gapUK

The difference between what women and men have saved for retirement.

In plain English:Women, on average, retire with much less in pensions than men, often because of lower pay, part-time work and time out to care for others.

MoreLess about Gender pension gap

Women often live longer too, so their savings need to last longer. Divorce can widen it if pensions aren't shared.

Child benefit claims can protect State Pension years for a parent not working.

For example: A mother who worked part-time for ten years has a much smaller pension pot than her husband at retirement.

GIA (General Investment Account)UK

An ordinary investment account without the tax benefits of an ISA or pension.

In plain English:An ordinary investment account with no tax shelter. You can put in as much as you like, but gains and income may be taxed.

MoreLess about GIA (General Investment Account)

GIA stands for general investment account. There's no limit on how much you can put in, and you can take money out any time.

People often use one once their ISA allowance is used. Moving investments into an ISA each year, called Bed and ISA, can shelter them.

For example: Someone fills their ISA and puts extra money into a GIA, paying tax on dividends above the dividend allowance.

Article inside Foliopeak: GIA: General Investment Accounts

Gift AidUK

Lets a charity claim back tax on what you give.

In plain English:When you give to a charity and pay tax, the charity can claim extra money from the government on top of your gift.

MoreLess about Gift Aid

The charity claims back basic-rate tax, so each £1 given becomes £1.25.

The donor must make a declaration, often by ticking a box. Paying less tax than the charity claims back means you may owe the difference.

For example: Give £100 with Gift Aid and the charity claims £25 from HMRC, so it gets £125.

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

Article inside Foliopeak: The £100k Trap

Gift Aid carry backUK

Counting this year's charity gifts as if you gave them last tax year.

In plain English:If you pay higher-rate tax, you can ask for charity gifts made this year to count as last year's, to get your tax relief sooner.

MoreLess about Gift Aid carry back

Last year's return must go in by its deadline (31 January online).

You have to tell HMRC you want this when you file last year's return; it can't be done afterwards.

For example: Give £800 in May and send last tax year's return in June. The gift can count in last tax year, so a higher-rate taxpayer gets their extra £200 back a year sooner.

Figures checked 8 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Giving to Charity: Gift Aid, Payroll Giving and Leaving a Gift

Gift Hold-over ReliefUK

Lets you pass on business assets without paying tax on the gain straight away.

In plain English:When you give away business assets, like shares in a family company, the tax on the gain can be passed on to the person you give it to.

MoreLess about Gift Hold-over Relief

Both people usually have to claim it together. It's often used to pass a family business or farm to the next generation.

If the person receiving the assets later sells, their gain includes the giver's gain too.

For example: A father gives his business premises to his son and claims hold-over relief. When the son sells years later, he pays tax on the full gain since his father bought it.

Article inside Foliopeak: Giving Away Things Other Than Cash

Gift with reservation of benefitUK

A gift you still benefit from, so it still counts in your estate.

In plain English:If you give something away but keep using it, like giving your house to your children and still living there, it still counts for Inheritance Tax.

MoreLess about Gift with reservation of benefit

Paying a full market rent to stay in the home can stop it counting. Other rules can also tax the benefit as income.

It's meant to stop people giving things away on paper while still using them.

For example: A mother gives her house to her son but keeps living there without paying rent. When she dies, it still counts in her estate.

Article inside Foliopeak: The Seven-Year Rule and Gifting to Children

Gifted depositUK

Money from family towards a home deposit, which lenders need a signed letter for.

In plain English:Money a parent or relative gives you towards a home deposit. Lenders want a signed letter saying it's a gift, not a loan.

MoreLess about Gifted deposit

Some lenders accept gifts from friends or other relatives too. The giver usually signs a form saying they'll have no claim on the home.

If the giver dies within seven years, the gift may count towards their estate.

For example: Parents give their son £30,000 towards a deposit and sign a gifted deposit letter for his lender.

See also: Seven-year rule

Gifts out of incomeUK

Regular gifts from spare income that are free of Inheritance Tax.

In plain English:If you regularly give money from your spare income, like paying into a grandchild's savings, it doesn't count for Inheritance Tax as long as you can still afford to live.

MoreLess about Gifts out of income

There's no 7-year wait, but they need records the executors can show.

Records of income, spending and the gifts make it easier to prove. The gifts should be part of a regular pattern.

It can be useful for things like paying a grandchild's school fees or regular payments into a child's savings.

For example: A retired person with a pension much larger than they spend pays £300 a month into each grandchild's Junior ISA from that spare income.

Article inside Foliopeak: The Seven-Year Rule and Gifting to Children

Gig economy

Work done job by job through apps, often while self-employed.

In plain English:Work where you take on one job at a time, often through apps like delivery or taxi apps, usually as self-employed.

MoreLess about Gig economy

Some gig workers are classed as "workers" with more rights, after court cases. Income above the trading allowance needs reporting to HMRC.

Platforms now share some earnings details with HMRC.

For example: Someone delivers food through an app at weekends and records their earnings and costs for their Self Assessment return.

See also: Sole trader

GiltsUK

Loans to the UK government that pay you interest.

In plain English:Loans to the UK government. You get interest twice a year and your money back on a set date. They're seen as very safe.

MoreLess about Gilts

Gilts can be bought through platforms or funds. Low coupon gilts can suit people paying higher rate tax, as much of the return is a tax-free gain.

Index-linked gilts pay interest and repay amounts that rise with inflation.

For example: Someone buys a gilt for £95 that repays £100 in two years. The £5 rise is free of Capital Gains Tax.

Article inside Foliopeak: Gilts, and the Low-Coupon Quirk

Gold

A precious metal some people hold as a store of value.

In plain English:A precious metal people buy because it has kept its value over long periods. It pays no interest and its price can swing.

MoreLess about Gold

People often buy it as a hedge against inflation or crises. It can be held as coins, bars, funds or ETCs.

Storage and insurance can cost money if you hold it yourself.

For example: During the 2020 market panic, gold rose while many shares fell.

Article inside Foliopeak: Commodities

Gold standard

An old system where a currency could be swapped for a fixed amount of gold.

In plain English:An old system where a country's money could be swapped for a fixed amount of gold. The UK left it in the nineteen thirties.

MoreLess about Gold standard

The UK left it in 1931, and the US ended the last link to gold in 1971.

It limited how much money governments could create. Leaving it gave central banks more control over interest rates and the economy.

Some people argue for returning to it, but most economists don't.

For example: Before 1931, someone in the UK could in theory swap pounds for a fixed amount of gold.

See also: Gold

Golden handshake

A lump sum paid when someone leaves a job.

In plain English:A large sum paid to someone, often a boss, when they leave a job.

MoreLess about Golden handshake

The first £30,000 of a genuine payment for losing a job can be free of income tax, but pay for work done, holiday or notice is taxed as normal.

Payments above the tax-free amount are taxed as income, and employer National Insurance may apply. A settlement agreement usually needs legal advice, often paid by the employer.

Paying some into a pension can lower the tax.

For example: Someone made redundant gets a payment for losing their job. The first part is tax-free and the rest is taxed as income.

Article inside Foliopeak: Made Redundant: What an Employee Is Owed, How It Is Taxed, and Where the Money Can Go

Golden parachute

A large payout promised to top bosses if they lose their jobs after a takeover.

In plain English:A big payout promised to top bosses if they lose their jobs after their company is taken over.

MoreLess about Golden parachute

They're meant to keep bosses focused on getting a good deal for shareholders. Critics say they reward failure.

Shareholders in UK companies vote on pay policies, including such payouts.

For example: A chief executive gets a payout of several years' salary when their company is taken over and they lose their job.

See also: Takeover

Good leaver and bad leaver

How a share scheme treats you when you leave, depending on why you go.

In plain English:If you leave a company on good terms, like retiring, you may keep your shares. If you leave on bad terms, you may lose them or get less.

MoreLess about Good leaver and bad leaver

The rules are in the scheme or company documents, so read them before joining. Some schemes have "intermediate" leavers too.

Bad leavers may have to sell shares back at a low price.

For example: An employee who resigns early is a bad leaver and must sell their shares back at what they paid, not what they're worth now.

Article inside Foliopeak: RSUs and Share Options: EMI, CSOP and Unapproved

Good till cancelled (GTC)

An order that stays open until it goes through or you cancel it.

In plain English:Most orders end when the market closes for the day. This kind waits, so a limit order can go through days or weeks later.

MoreLess about Good till cancelled (GTC)

An order that ends when the market closes is called a day order. A good till cancelled order carries on.

It's easy to forget one is waiting, so check your open orders. It could go through long after you've changed your mind.

For example: Someone sets a good till cancelled order to buy a share at £5 while it's at £5.40. Three weeks later the price dips and the order goes through.

Article inside Foliopeak: How Buying and Selling Shares Works

Goodwill

The value of a business's name, customers and reputation.

In plain English:When a business is bought for more than its things are worth, the extra is goodwill. It covers things like its name and loyal customers.

MoreLess about Goodwill

It shows up in accounts only when one business buys another. It's tested each year and reduced if it's lost value.

For tax, goodwill bought by a company can sometimes get relief.

For example: A company buys a business with £1 million of assets for £1.5 million. The £500,000 extra is goodwill.

Green giltsUK

Government loans whose money goes to green projects.

In plain English:Loans to the UK government where the money is spent on green projects, like clean energy.

MoreLess about Green gilts

The UK first issued them in 2021. The government reports on what the money paid for.

Buying them doesn't change your tax or return, just where the government says the money goes.

For example: A pension fund buys green gilts so its money helps pay for wind farms and electric buses.

Greenwashing

Making something sound better for the environment than it really is.

In plain English:When a company or fund claims to be greener than it really is, to win customers.

MoreLess about Greenwashing

Vague words like "eco-friendly" or "sustainable" without proof are warning signs. The FCA's anti-greenwashing rule started in 2024.

Fund labels such as "Sustainability Focus" can only be used if the fund meets set rules.

For example: A fund calls itself "green" but holds large oil companies. The FCA's rule means it must be able to back up that claim.

Gross and net

An amount before deductions, and what's left after them.

In plain English:Gross is the full amount before anything is taken off. Net is what you're left with after tax, fees or other deductions.

MoreLess about Gross and net

Interest rates on savings can be shown as gross, before tax, and AER. Business figures use gross for sales and net for profit after costs.

For example: A gross salary of £30,000 is about £25,120 net after income tax and National Insurance, before any pension or student loan.

Gross margin

How much of each sale is left after the direct cost of what was sold.

In plain English:Gross profit as a share of sales. It shows how much of each pound of sales is left after paying for what was sold.

MoreLess about Gross margin

Higher margins can mean a strong brand or cheap production. Margins vary widely by industry.

Comparing them over time shows if costs are rising faster than prices.

For example: A shop sells £100,000 of goods that cost it £60,000. Its gross margin is 40%.

Gross profit

Sales minus the direct cost of what was sold, before other running costs.

In plain English:Money from sales minus what it cost to make or buy the things sold, before rent, wages and other running costs.

MoreLess about Gross profit

It's shown near the top of a business's profit and loss account.

A business can have strong gross profit and still lose money if its overheads are too high.

For example: A bakery sells £50,000 of bread and spends £20,000 on flour and ingredients. Its gross profit is £30,000.

See also: Gross margin

Ground rent

A yearly sum a leaseholder pays the freeholder.

In plain English:If you own a leasehold home, you may pay the freeholder a yearly ground rent. It's now banned on most new leases.

MoreLess about Ground rent

Older leases can have ground rent that doubles every few years, which can make flats hard to sell. The government plans to cap ground rent on existing leases.

Not paying it can lead to legal action and, in some cases, losing the lease.

For example: Someone buys a new-build leasehold flat and pays no ground rent, because the law says it must be zero.

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

Growth and value investing

Backing fast-growing companies, or companies that look cheap.

In plain English:Growth investing backs companies expected to grow fast. Value investing looks for companies whose shares seem cheap for what they're worth.

MoreLess about Growth and value investing

Each style tends to do better at different times. Growth did well in the 2010s; value did better at times when interest rates rose.

Many investors hold both, often through a global index fund.

For example: A value investor buys shares in a bank trading cheaply against its profits, while a growth investor buys a fast-growing tech company.

Growth sharesUK

Shares that only gain from a company's growth above a set value.

In plain English:Shares that only gain value if the company grows above a set level, so new staff can share in future growth at a low cost.

MoreLess about Growth shares

They're often used in private companies to give staff a share of future growth. Tax can be low if they're valued properly at the start.

If the company is sold for less than the figure, they get nothing.

For example: A company worth £2 million gives an employee growth shares. When it's sold for £5 million, those shares share in the £3 million rise.

Article inside Foliopeak: Types of Shares: Ordinary, Preference, and A, B and C Shares

Guaranteed and reviewable premiums

Insurance prices that are fixed, or that can be raised later.

In plain English:Guaranteed premiums stay the same for the whole policy. Reviewable premiums start cheaper but can go up later.

MoreLess about Guaranteed and reviewable premiums

Reviewable premiums are often used for long-term policies, such as whole of life. Insurers can raise them a lot as you get older.

Guaranteed premiums give certainty but cost more at the start.

For example: Someone chooses reviewable cover to save money, then sees the price double at the ten-year review.

Guaranteed annuity rate (GAR)

A generous annuity rate promised by some older pensions.

In plain English:Some older pensions promise to turn your pot into a very good income. Check for one before moving or cashing in an old pension.

MoreLess about Guaranteed annuity rate (GAR)

Some policies from the 1970s to 1990s offer rates twice what you'd get now. They often come with conditions, such as retiring at a set age.

Check your pension documents before moving or taking money from an old policy.

For example: Someone finds their old pension has a guaranteed annuity rate that pays far more income than any annuity on the market today.

Article inside Foliopeak: Consolidating Old Pensions

Guaranteed future value (GFV)

The least your car is promised to be worth at the end of a car finance deal.

In plain English:With car finance like PCP, the amount the car is promised to be worth at the end. You can pay it to keep the car, or hand the car back.

MoreLess about Guaranteed future value (GFV)

You can also pay it to keep the car, or trade it in, using any value above it towards the next car.

Going over the agreed mileage or damage can mean extra charges if you hand it back.

For example: A car's guaranteed future value is £10,000. At the end of the deal it's worth £8,000, so the driver hands it back instead of paying £10,000.

Article inside Foliopeak: Car Finance: PCP, Hire Purchase and Leasing

Guaranteed Minimum Pension (GMP)UK

The least an old final salary pension must pay for years someone was contracted out.

In plain English:If you were contracted out years ago, your old final salary pension must pay at least a certain amount for those years.

MoreLess about Guaranteed Minimum Pension (GMP)

It covers years contracted out between 1978 and 1997.

GMP stands for guaranteed minimum pension. It was meant to make sure contracted-out members didn't lose out compared with staying in the state scheme.

Your scheme can tell you how much of your pension is GMP. It can affect how your pension rises each year.

For example: A man gets a letter from his old employer's pension scheme saying his GMP has been corrected, with a small back payment.

Article inside Foliopeak: Do You Know What's in Your Pension?

Guarantor

Someone who agrees to pay a debt if the borrower can't.

In plain English:Someone, often a parent, who promises to pay your debt or rent if you can't. It's a big promise, as they can be chased for it.

MoreLess about Guarantor

It's common for students renting and for young people with little credit history. Some lenders charge high interest on guarantor loans.

Being a guarantor can affect your own borrowing, and you can't usually just walk away from it.

For example: A parent acts as guarantor for their child's flat. When the child stops paying rent, the landlord asks the parent for the money.

Guardian

A person you name in your will to look after your children.

In plain English:The person you choose in your will to bring up your children if you die before they turn eighteen.

MoreLess about Guardian

It's the only way to have a say in who raises your children. Without one, a court decides.

Ask the person first, and think about naming a backup. Money left for the children is often held in a trust.

For example: A couple names a sister as guardian in their wills, so she would raise their children if both died.

Article inside Foliopeak: Wills and Lasting Powers of Attorney: Who Inherits, and Who Acts for You

Guardian's AllowanceUK

Money for someone bringing up a child whose parents have died.

In plain English:Extra weekly money for someone bringing up a child whose parents have died. You must already get Child Benefit.

MoreLess about Guardian's Allowance

You must be getting Child Benefit for the child, or have claimed it. It doesn't affect other benefits.

You don't need to be the child's legal guardian to claim.

For example: A grandmother raising her grandson after both his parents died claims Child Benefit and Guardian's Allowance.