Money Terms in Plain English.
Terms marked UK are specific to the UK. A nation's name, like Scotland, means the rule only applies there.
S
- S&P 500
- An index of about five hundred of the biggest US companies.
- In plain English:A list of around five hundred of the biggest American companies. It's the most watched measure of the US stock market.
MoreLess about S&P 500
It's often used as the measure of how US shares are doing. A few huge companies make up much of its value.
For example: Someone buys an S&P 500 tracker fund to own a slice of the biggest US companies.
- Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs
- SA302 (tax calculation)UK
- HMRC's summary of your Self Assessment tax, which mortgage lenders ask for as proof of income.
- In plain English:A summary from HMRC of your income and tax for a year from your Self Assessment. Lenders often ask for it if you're self-employed.
MoreLess about SA302 (tax calculation)
Lenders often ask for two or more years. They may also want accounts.
For example: A self-employed electrician downloads their SA302s for the last two years to send with a mortgage application.
- Safe account scamUK
- A scam where a fake bank caller tells you to move your money to a "safe" account.
- In plain English:A scammer pretending to be your bank or the police says your money is at risk and tells you to move it to a safe account. It's always a scam.
MoreLess about Safe account scam
They may know some of your details to seem real. They often say not to tell your bank.
For example: A caller says they're from the bank's fraud team and tells someone to move savings to a new account. It's a scam.
- Article inside Foliopeak: Spotting an Investment Scam
- Safe withdrawal rate
- How much you can take from a retirement pot each year without running out.
- In plain English:How much of your retirement savings you can take out each year with a good chance of it lasting the rest of your life.
MoreLess about Safe withdrawal rate
The 4% rule comes from US research on 30-year retirements.
Some argue a lower rate is safer for longer or UK retirements. Spending can be adjusted in bad years.
For example: Taking 4% a year from £500,000 is £20,000 in the first year.
- Article inside Foliopeak: Safe Withdrawal Rates: Beyond the 4% Rule
- Salary and dividends
- How many company directors pay themselves.
- In plain English:Company directors often pay themselves a small salary and the rest as dividends, as this can mean less tax overall.
MoreLess about Salary and dividends
The best mix changes with tax rules. Many take a salary up to the National Insurance threshold.
For example: A company director takes a small salary to protect their State Pension and the rest as dividends.
- Article inside Foliopeak: Salary vs Dividends for Company Directors
- Salary sacrifice
- Swapping some salary for a benefit such as pension payments, saving tax.
- In plain English:You agree to give up some pay, and your employer puts it into your pension or another benefit instead. You both save on tax and National Insurance.
MoreLess about Salary sacrifice
From 6 April 2029, National Insurance is due on pension salary sacrifice over £2,000 a year.
It can lower your pay for things like mortgage applications. Some benefits, like electric cars, can also be paid this way.
For example: Give up £1,500 of salary for £1,500 of pension payments, and you pay no income tax or National Insurance on that £1,500.
- Article inside Foliopeak: Salary Sacrifice Into a Pension
- Satoshi
- The smallest piece of a bitcoin, one hundred millionth of a coin.
- In plain English:The smallest unit of bitcoin. A bitcoin is split into a hundred million of them, so you can own a tiny piece.
MoreLess about Satoshi
One satoshi is 0.00000001 of a bitcoin.
Bitcoin's creator, Satoshi Nakamoto, has never been identified. Prices are often quoted in "sats".
For example: Someone buys £10 of bitcoin and gets a number of satoshis rather than a whole coin.
- Article inside Foliopeak: CryptocurrencyGame: Halving Clock
- Scheme paysUK
- Paying a pension tax charge out of the pension itself.
- In plain English:If you owe a pension tax charge for paying in too much, you can ask your pension scheme to pay it from your pot instead of paying it yourself.
MoreLess about Scheme pays
It's useful if you don't have spare cash. Above a set charge, schemes must offer it.
For example: A doctor gets an annual allowance charge and asks their pension scheme to pay it, reducing their future pension.
- Article inside Foliopeak: The Pension Annual Allowance
- Scottish Child PaymentUK
- A weekly payment for each child under sixteen for families in Scotland on certain benefits.
- In plain English:In Scotland, families on certain benefits get a weekly payment for each child under sixteen.
MoreLess about Scottish Child Payment
It's for each child under 16.
It's paid every four weeks. You apply through Social Security Scotland.
For example: A family in Glasgow on Universal Credit gets Scottish Child Payment for each of their two children.
- See also: Child Benefit
- Scottish income taxApplies in Scotland
- Scotland's own income tax bands and rates.
- In plain English:If you live in Scotland, you pay Income Tax on your pay at Scotland's own rates and bands, which differ from the rest of the UK.
MoreLess about Scottish income tax
Rates run from a 19% starter rate to a 48% top rate. Savings and dividends are taxed at UK rates.
Your tax code starts with S if you pay it. It's collected by HMRC.
For example: Someone living in Edinburgh has a tax code starting with S, so their income tax is worked out at Scottish rates.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: Income Tax & National Insurance, in One Place
- Scrip dividendUK
- New shares taken instead of a cash dividend.
- In plain English:Instead of cash, the company gives you new shares for your dividend. You own more shares but don't get money.
MoreLess about Scrip dividend
It lets you build your holding without dealing charges. The new shares have a cost for tax.
For example: Someone chooses a scrip dividend and gets 10 new shares instead of £50 in cash.
- Article inside Foliopeak: Types of Shares: Ordinary, Preference, and A, B and C Shares
- Second charge mortgage
- A second loan secured on a home that already has a mortgage.
- In plain English:A second loan secured on your home, on top of your main mortgage. If you can't pay, you could lose your home.
MoreLess about Second charge mortgage
Interest can be higher than a first mortgage. Your first lender may need to be told.
For example: Someone borrows £30,000 against their home with a second charge mortgage, keeping their low-rate first mortgage.
- Section 104 poolingUK
- How HMRC works out the average cost of shares you bought at different times.
- In plain English:If you buy the same shares at different times and prices, HMRC treats them as one pile at an average cost when working out your gain.
MoreLess about Section 104 pooling
Each company has its own pool. Buying more raises the pool's cost.
For example: Someone buys 100 shares at £2 and 100 at £4. Their pool is 200 shares costing £600, or £3 each.
- Article inside Foliopeak: How Section 104 Pooling Actually WorksGame: 30-Day Rule
- Section 21 (no-fault eviction)Applies in England
- A notice that let landlords in England end a tenancy without a reason, now abolished.
- In plain English:A notice that let landlords in England end a tenancy without giving a reason. It's been scrapped by the Renters' Rights Act.
MoreLess about Section 21 (no-fault eviction)
It ended from 1 May 2026.
Landlords must now use Section 8 with a reason. Tenants can still end tenancies with notice.
For example: A landlord in England wants a tenant to leave and must now show a legal ground, such as wanting to sell.
- Section 24UK
- The rule that limits the tax relief landlords get on mortgage interest.
- In plain English:Landlords who own homes in their own name can't take mortgage interest off their rental income. They get a basic rate tax credit instead.
MoreLess about Section 24
Instead landlords get a tax reduction worth 20% of the interest.
It mainly affects higher rate taxpayers. It's one reason some landlords use companies.
For example: A higher rate landlord pays £10,000 in mortgage interest and gets only a basic rate tax reduction on it.
- Article inside Foliopeak: Letting Out Property: Section 24 and What You Can Deduct
- Section 75UK
- The law that makes your credit card provider share responsibility when a purchase goes wrong.
- In plain English:If you pay for something by credit card and it goes wrong, the card company shares the blame with the seller, so you can ask it for your money back. It covers items within a set price range.
MoreLess about Section 75
It covers the full amount, even if you only paid part on the card. Debit cards aren't covered.
For example: Someone pays a deposit on a sofa with their credit card. The shop goes bust, and the card provider refunds them.
- Article inside Foliopeak: Credit Cards and Borrowing: What It Really Costs
- Sector rotation
- Money moving from one type of business to another as views on the economy change.
- In plain English:Investors shift money between types of company, like out of tech and into energy, depending on what they think the economy will do next.
MoreLess about Sector rotation
Shares that do well when the economy grows, like housebuilders, tend to gain when people feel hopeful, and steadier ones, like utilities, when they're worried.
Trying to time these shifts is hard, and a fund that holds every sector gets some of each.
For example: Interest rates are expected to rise, so investors sell technology shares and buy bank shares, which can earn more when rates are higher.
- Sectors
- The groups shares are sorted into by what companies do, such as energy or banks.
- In plain English:Shares are grouped by what the company does, like banks, energy or health. It helps you see if you're spread out.
MoreLess about Sectors
Some sectors do better in booms, others in slowdowns. Funds often show sector weightings.
For example: In 2022 energy shares rose sharply while technology shares fell.
- See also: Diversification
- Secured and unsecured debt
- Debt tied to something you own, or debt that isn't.
- In plain English:Secured debt, like a mortgage, is tied to something you own, which can be taken if you don't pay. Unsecured debt, like a credit card, isn't.
MoreLess about Secured and unsecured debt
Secured debt is usually cheaper. Unsecured debt can still lead to court action.
For example: Someone has a mortgage, which is secured, and a credit card, which is unsecured.
- Securities lending
- When a fund lends out its shares or bonds to other firms for a fee.
- In plain English:A fund lends out its shares to other firms for a fee, which can lower your costs. The borrower gives something back as security.
MoreLess about Securities lending
Many index funds do it. Funds report how much they lend.
For example: A fund lends shares to a hedge fund for a fee, holding collateral in case they aren't returned.
- Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs
- Self AssessmentUK
- The yearly tax return for income that hasn't been taxed already.
- In plain English:A yearly tax return you fill in online if you have income not taxed at source, like self-employment, rent or high earnings.
MoreLess about Self Assessment
Online returns, and the bill, are due by 31 January after the tax year ends.
You register with HMRC first. Some can use their tax code to pay small amounts.
For example: The return and any tax owed for the tax year to April are due online by 31 January the following year.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: Self Assessment: Who Needs to File, and by When
- Self-custody
- Keeping crypto in a wallet where only you hold the keys.
- In plain English:Holding your crypto in your own wallet, with only you having the keys. No one can freeze it, but if you lose the keys, it's gone.
MoreLess about Self-custody
You need to back up your keys carefully. Hardware wallets help.
For example: Someone moves their bitcoin from an exchange to their own hardware wallet.
- Article inside Foliopeak: CryptocurrencyGame: Seed Phrase Safe
- Self-funder (paying for your own care)UK
- Someone who pays the full cost of their own care.
- In plain English:Someone who pays the full cost of their own care because their money is above the council's limit.
MoreLess about Self-funder (paying for your own care)
You can still ask the council to arrange care for you. Help may start once savings fall.
For example: Someone with savings above the limit pays for their own care home, but asks the council to assess them as their savings run down.
- Article inside Foliopeak: Paying for Care: The Means Test, the Home and What the NHS Pays
- Sequence of returns risk
- The danger of markets falling just as you start taking money out.
- In plain English:If markets fall badly just as you start taking money from your pension, your money can run out much sooner, even if markets recover later.
MoreLess about Sequence of returns risk
Having cash for a few years' spending can help. Taking less in bad years helps too.
For example: Two people retire with the same pot. One faces a crash in year one and runs out earlier than the other, whose crash came later.
- Article inside Foliopeak: Sequence-of-Returns Risk
- SequestrationApplies in Scotland
- The Scottish name for bankruptcy.
- In plain English:The Scottish word for bankruptcy. A court clears most of your debts, but your belongings may be sold to pay back what you can.
MoreLess about Sequestration
It's run by the Accountant in Bankruptcy. Low-income, low-asset people may use a simpler route.
For example: Someone in Scotland with debts they can't repay applies for sequestration.
- See also: Bankruptcy
- Service charge
- What a leaseholder pays towards looking after the building.
- In plain English:If you own a leasehold flat, you pay a yearly charge towards cleaning, repairs and insurance for the building and shared areas.
MoreLess about Service charge
It can rise sharply for big repairs. Leaseholders can challenge unfair charges.
For example: A block's roof needs replacing, and each leaseholder's service charge rises to cover it.
- Article inside Foliopeak: Buying a Home: From Offer to Keys
- Settlement (T+2 and T+1)
- When the money and shares actually change hands after you buy or sell.
- In plain English:When you buy or sell shares, the money and shares swap hands a day or two later. That's settlement.
MoreLess about Settlement (T+2 and T+1)
UK shares settle two working days after the trade (T+2), moving to one day (T+1) in October 2027.
Funds may take longer. Cash from sales usually shows straight away but can't be withdrawn until settled.
For example: Someone sells shares on Monday, and the money is ready to withdraw on Wednesday.
- Settlor
- The person who sets up a trust.
- In plain English:The person who puts money or things into a trust and sets the rules for it.
MoreLess about Settlor
They can sometimes also be a trustee or beneficiary. Tax rules can apply to them.
For example: A grandmother acts as settlor, putting money into a trust for her grandchildren.
- Article inside Foliopeak: Trusts in Plain English
- Seven-year ruleUK
- Gifts usually fall out of Inheritance Tax if you live long enough after giving them.
- In plain English:If you give money or things to a person and live for seven more years, the gift is free of Inheritance Tax. If you die sooner, tax may be due.
MoreLess about Seven-year rule
The wait is 7 years. On gifts made 3 to 7 years before death, taper relief cuts any tax due.
Gifts using annual exemptions are free straight away. Keep records of gifts.
For example: Give your son £50,000 and live 7 more years, and the gift is outside your estate for Inheritance Tax.
- Article inside Foliopeak: The Seven-Year Rule and Gifting to Children
- Shadow banking
- Lending done by firms that aren't banks, so they don't face bank rules.
- In plain English:Lending and borrowing done by firms that aren't banks, like some funds. They don't face the same rules, so problems can be hidden.
MoreLess about Shadow banking
It includes money market funds and private credit. It can spread risk in a crisis.
For example: A private lender offers loans to businesses that banks turned down, outside banking rules.
- See also: Private credit
- Short interest
- How much of a company's shares are being bet against by short sellers.
- In plain English:It shows how many people are betting a share will fall. A lot of bets against it means many investors think it's in trouble.
MoreLess about Short interest
In the UK, the FCA publishes large short positions in each company, so you can see who's betting against it.
Very high short interest can lead to a short squeeze if the price rises and short sellers rush to buy back.
For example: Funds have shorted 8% of a retailer's shares. When it reports better sales than expected, the price jumps as they buy back.
- Short seller report
- A report by an investor betting a company's shares will fall, saying what's wrong with it.
- In plain English:An investor betting a company's shares will fall publishes a report saying what's wrong with the company. The share price often drops.
MoreLess about Short seller report
Companies often deny them. Some have uncovered real fraud.
For example: A short seller publishes a report claiming a company's sales are fake, and its shares fall 30%.
- See also: Short selling
- Short selling
- Betting a share price will fall by selling borrowed shares.
- In plain English:You borrow shares and sell them, hoping to buy them back cheaper later. If the price rises instead, your losses have no limit.
MoreLess about Short selling
Lenders charge a fee. Regulators can ban it in a crisis.
For example: Someone shorts a share at £10 and buys back at £8, making £2 a share.
- Short squeeze
- A sharp price rise caused by people who bet against a share rushing to buy it back.
- In plain English:When a share that many people have bet against rises, they rush to buy it back to limit losses, which pushes the price up even more.
MoreLess about Short squeeze
It often happens with shares that are heavily shorted. Prices can swing wildly.
For example: A share heavily bet against rises on good news, and short sellers rushing to buy push it up 50% in a day.
- Article inside Foliopeak: Stocks, Shares and Equities
- Short-term letsUK
- Renting out a home or room by the night or week, such as through Airbnb.
- In plain English:Renting out a home or room by the night or week, such as on Airbnb. There are tax rules, and some areas need planning permission.
MoreLess about Short-term lets
The furnished holiday let tax rules ended in April 2025. Scotland needs a licence for them, and Wales and England are bringing in registration.
Councils may have rules on planning. Income is taxed as property income.
For example: Someone rents their flat on Airbnb while away and reports the income on their tax return.
- See also: Furnished holiday lettings
- Shrinkflation
- A product getting smaller while its price stays the same.
- In plain English:When a product gets smaller, like fewer biscuits in a pack, but costs the same. It's a hidden price rise.
MoreLess about Shrinkflation
It's common in snacks and household goods. Shops must show unit prices.
For example: A chocolate bar shrinks from 200g to 180g but stays at the same price.
- See also: Inflation
- Simple AssessmentUK
- A tax bill HMRC works out and sends you without a tax return.
- In plain English:If HMRC already knows your income, like from your State Pension, it works out what you owe and sends you a bill. You don't need a tax return.
MoreLess about Simple Assessment
You get a letter explaining the bill. You can query it if wrong.
For example: A pensioner whose State Pension is above their allowance gets a simple assessment letter from HMRC.
- Simplified expensesUK
- Flat rates a sole trader can use instead of working out real costs.
- In plain English:Instead of working out exact costs, sole traders can use flat rates for things like car mileage and working from home.
MoreLess about Simplified expenses
They make record-keeping easier. You can't use them for everything.
For example: A self-employed designer uses the flat rate for working from home instead of working out a share of their bills.
- Article inside Foliopeak: What You Can - and Can't - Claim As a Business Expense
- Single person discount (Council Tax)Applies in England, Scotland, Wales
- A quarter off your Council Tax if you're the only adult living in your home.
- In plain English:If you're the only adult living in your home, you get a quarter off your Council Tax. You have to ask your council for it.
MoreLess about Single person discount (Council Tax)
It's 25% off. Some people, such as full-time students, aren't counted, so a home can qualify even with more than one adult in it.
Councils check claims. Tell your council if someone moves in.
For example: Someone's partner moves out, so they apply for the single person discount.
- Article inside Foliopeak: Making a Budget, Alone or Together
- Sinking fund
- Money put aside bit by bit for a known future cost.
- In plain English:Saving a little each month for a cost you know is coming, like car repairs or Christmas, so it isn't one big bill.
MoreLess about Sinking fund
It helps avoid using credit for expected costs. Many people use separate savings pots.
For example: Putting £50 a month aside for a £600 car insurance bill due next year.
- Article inside Foliopeak: Making a Budget, Alone or Together
- SIPP (Self-Invested Personal Pension)UK
- A personal pension where you choose the investments.
- In plain English:A self-invested personal pension. You choose where the money goes from a wide range of funds and shares, and get tax relief on what you pay in.
MoreLess about SIPP (Self-Invested Personal Pension)
SIPP stands for self-invested personal pension. You can hold funds, shares and more.
For example: Someone opens a SIPP and chooses a mix of global index funds.
- Article inside Foliopeak: Pensions: SIPPs, Workplace Pensions, and SSAS
- Sixty-day property returnUK
- Reporting and paying tax quickly after selling a second home.
- In plain English:If you sell a home that isn't your main home, like a rental, you must tell HMRC and pay any Capital Gains Tax within sixty days.
MoreLess about Sixty-day property return
It's done online through HMRC. Late filing brings penalties.
For example: Someone sells a buy-to-let flat at a gain and reports it to HMRC within 60 days, paying the tax.
- Slippage
- The gap between the price you expected and the price you actually got.
- In plain English:You see a price and press buy, but by the time the order goes through, the price has moved. That gap is slippage.
MoreLess about Slippage
It's most common with market orders, rarely traded shares, sudden news and the first minutes after a market opens.
A limit order sets the worst price you'll accept, which stops slippage, though the trade may then not go through at all.
For example: Someone places a market order to buy a share showing £10.00, and it goes through at £10.08. The 8p is slippage.
- Article inside Foliopeak: How Buying and Selling Shares Works
- Small gifts exemptionUK
- Small gifts to anyone each year that are free of Inheritance Tax.
- In plain English:You can give small gifts to as many people as you like each year, and they won't count for Inheritance Tax.
MoreLess about Small gifts exemption
It's £250 per person a tax year. It only works if no other exemption, such as the £3,000 annual exemption, is used on the same person.
It's often used for birthday and Christmas gifts. It can't be used for part of a bigger gift.
For example: Someone gives each of their six grandchildren a small birthday gift within the limit, all free of Inheritance Tax.
- Article inside Foliopeak: The Seven-Year Rule and Gifting to Children
- Small pots ruleUK
- Lets you cash in a small pension without cutting future pension allowances.
- In plain English:You can cash in small pension pots, up to a few each, without it lowering how much you can pay into pensions later.
MoreLess about Small pots rule
You can usually take up to three personal pots this way. Workplace pots have no number limit.
For example: Someone cashes in a small old pension from a job they had years ago without affecting how much they can pay in later.
- Article inside Foliopeak: Taking Your Pension - the Spending Side
- Small, mid and large cap
- Shorthand for the size of a company on the stock market.
- In plain English:Large caps are big companies, mid caps are medium-sized and small caps are small. Smaller ones can grow faster but are riskier.
MoreLess about Small, mid and large cap
Small caps can grow fast but fail more. Large caps are steadier.
For example: A small cap fund rises 30% in a good year but falls 25% in a bad one.
- Smart beta
- Index funds that pick companies by something other than size.
- In plain English:Index funds that choose companies by something other than size, like cheapness or steady dividends.
MoreLess about Smart beta
Fees are usually a bit higher than standard index funds. Results vary.
For example: A smart beta fund holds more of companies paying high dividends than a normal index fund would.
- Smart contract
- A program on a blockchain that runs by itself when set conditions are met.
- In plain English:A program on a blockchain that runs automatically when certain things happen. If the code has a mistake, money can be lost.
MoreLess about Smart contract
They're used for DeFi and NFTs. Code is often checked by auditors.
For example: A smart contract automatically pays a seller when a buyer's payment arrives.
- Article inside Foliopeak: Cryptocurrency
- Snagging
- Checking a new-build home for faults the builder should fix.
- In plain English:Checking a newly built home for faults, like cracks or doors that stick, so the builder fixes them.
MoreLess about Snagging
New-build buyers often use professional snagging firms. Report faults early.
For example: A buyer finds cracked tiles and a door that won't close, and the builder fixes them under warranty.
- Soft and hard landing
- Whether higher interest rates bring inflation down gently or cause a recession.
- In plain English:A soft landing is when higher interest rates bring inflation down without a recession. A hard landing is when they cause one.
MoreLess about Soft and hard landing
Soft landings are rare. Central banks aim for them.
For example: Inflation falls without a recession, so commentators say the economy had a soft landing.
- See also: Recession
- Sole trader
- Someone running a business as themselves, not through a company.
- In plain English:Running a business as yourself, not as a company. It's simple to set up, but you're personally responsible for any debts.
MoreLess about Sole trader
It's the simplest way to start a business. Profits above certain levels may be better in a company.
For example: A freelance writer works as a sole trader, filing a tax return each year.
- Article inside Foliopeak: Being a Sole Trader, in Plain EnglishCalculator: Sole Trader Tax Calculator
- SONIA (and LIBOR)UK
- The overnight rate banks pay each other, which some loans follow instead of Bank Rate.
- In plain English:The interest rate banks pay to borrow from each other overnight. Some loans and mortgages follow it instead of Bank Rate.
MoreLess about SONIA (and LIBOR)
It replaced LIBOR for most sterling loans by the end of 2021.
It's worked out from real overnight deals, which makes it harder to rig than LIBOR was.
For example: A business loan charges SONIA plus 3%, so its rate changes as SONIA moves.
- See also: Bank Rate
- Sort codeUK
- The six-digit number that identifies a UK bank branch.
- In plain English:The six-digit number that shows which bank and branch an account belongs to. You need it with the account number to pay someone.
MoreLess about Sort code
It's written as three pairs of numbers. Don't share it with strangers along with other details.
For example: Someone gives their employer their sort code and account number so their pay goes into the right account.
- Article inside Foliopeak: How Money Moves: Faster Payments, Bacs and CHAPS
- Source of funds and source of wealth
- Where the money for a payment came from, and how you built up your money overall.
- In plain English:Banks may ask where the money for a big payment came from, and how you built up your money overall, to stop money laundering.
MoreLess about Source of funds and source of wealth
Checks are common for large payments, like buying a house. Keep records.
For example: Someone buying a home is asked by their solicitor to show where their deposit came from.
- See also: Anti-money laundering checks (AML)
- Sovereign wealth fund
- An investment fund owned by a country, often built from oil money.
- In plain English:A huge investment fund owned by a country, often built from oil money, like Norway's. It invests around the world.
MoreLess about Sovereign wealth fund
They often invest for future generations. Some are very large.
For example: Norway's fund owns small stakes in thousands of companies around the world.
- SPAC (special purpose acquisition company)
- A shell company that lists on a stock exchange to buy a private company.
- In plain English:An empty shell company that lists on the stock market to raise money, then uses it to buy a private company. Many have done badly.
MoreLess about SPAC (special purpose acquisition company)
SPAC stands for special purpose acquisition company. They were very popular in 2020 and 2021.
Investors often don't know which company will be bought when they put money in.
For example: A SPAC raises £200 million, then merges with an electric car startup. A year later its shares are worth a fraction of the starting price.
- See also: IPO (initial public offering)
- Special dividend
- A one-off extra dividend on top of a company's normal ones.
- In plain English:A one-off extra payment to shareholders, often after a company sells part of itself or has spare cash.
MoreLess about Special dividend
It's taxed like any other dividend. The share price usually drops by about its value when it goes ex-dividend.
For example: A company sells a division and pays shareholders a special dividend of 50p a share on top of its usual dividend.
- See also: Dividend
- Specified adult childcare creditsUK
- State Pension credits for grandparents and relatives who look after children.
- In plain English:If a grandparent or relative looks after a child while the parents work, they can get National Insurance credits towards their State Pension.
MoreLess about Specified adult childcare credits
It's for looking after a child under 12.
The relative applies to HMRC. The parent must agree to transfer the credit.
It can fill gaps in a grandparent's record.
For example: A grandmother looks after her grandson while his parents work and claims credits so the year counts towards her State Pension.
- Spot Bitcoin ETF
- A fund that holds real bitcoin, allowed in the US but not offered to everyday UK investors.
- In plain English:A fund that holds actual bitcoin and trades on a stock exchange. They exist in the US but everyday UK investors can't buy them.
MoreLess about Spot Bitcoin ETF
The US allowed them in January 2024.
They made it easier for US investors to own bitcoin through normal accounts. Fees vary.
For example: A US investor buys a spot bitcoin ETF in their retirement account instead of holding bitcoin directly.
- See also: Crypto ETN (exchange traded note)
- Spot price
- The price to buy or sell something right now, rather than at a future date.
- In plain English:The price to buy or sell something right now, like gold or oil, rather than at a date in the future.
MoreLess about Spot price
Futures prices are often a bit higher or lower than spot. Spot prices move all day.
For example: The spot price of gold is £2,000 an ounce today, while a futures contract for six months' time is priced at £2,040.
- Article inside Foliopeak: Commodities
- Spouse exemptionUK
- What passes between married couples is usually free of Inheritance Tax.
- In plain English:Money and belongings left to or given to a husband, wife or civil partner are usually free of Inheritance Tax.
MoreLess about Spouse exemption
If one partner isn't UK resident long-term, the exemption is limited. They can choose to be treated as UK resident.
For example: A husband dies and leaves everything to his wife. No Inheritance Tax is due on his death.
- Spread betting
- Betting on how far a price will move, with borrowed money.
- In plain English:Betting on how much a price will move, using borrowed money. Winnings are tax-free, but losses can be bigger than what you put in.
MoreLess about Spread betting
Providers must show how many of their customers lose money. Some offer guaranteed stops for a fee.
For example: Someone bets £10 a point that the FTSE 100 will rise. It falls 100 points, and they lose £1,000.
- Article inside Foliopeak: Leverage - Borrowing to Invest
- Spring StatementUK
- The government's spring update on the economy, with the main tax changes left for the Budget.
- In plain English:A spring update from the Chancellor on how the economy is doing. Most big tax changes are kept for the Budget in the autumn.
MoreLess about Spring Statement
The government aims to have one big tax event a year. Sometimes changes are announced in spring too.
For example: In the Spring Statement, the Chancellor sets out new forecasts but keeps most tax changes for the autumn Budget.
- Article inside Foliopeak: What Changed in the Budget
- SSAS (small self-administered scheme)UK
- A small pension set up by a company for its directors, who run it themselves.
- In plain English:A small company pension, usually for a handful of directors, who act as trustees and choose the investments themselves. It can even lend to the company.
MoreLess about SSAS (small self-administered scheme)
It can have up to 11 members.
SSAS stands for small self-administered scheme. Members run it themselves.
It can lend up to half its value to the sponsoring company, within rules.
For example: Two directors use their SSAS to buy the office their company works from, with the company paying rent to the pension.
- Article inside Foliopeak: Pensions: SIPPs, Workplace Pensions, and SSAS
- Stablecoin
- A cryptocurrency meant to keep the same value as a normal currency.
- In plain English:A crypto coin built to stay worth the same as a normal currency, like one dollar. It only works if the firm behind it really holds the money.
MoreLess about Stablecoin
They're used to move money between exchanges and for payments. Some have lost their peg and collapsed.
The UK plans rules for stablecoins used for payments.
For example: In 2022 a large stablecoin lost its link to the dollar and fell to almost nothing within days.
- Stagflation
- High prices, weak growth and rising unemployment all at once.
- In plain English:The worst of both worlds: prices keep rising fast while the economy stalls and more people lose their jobs.
MoreLess about Stagflation
The 1970s saw it after oil price shocks. It's bad for both shares and bonds.
For example: In the 1970s UK inflation went above 20% while unemployment rose.
- Stakeholder pensionUK
- An older kind of low-cost personal pension.
- In plain English:An older type of personal pension with low charges and small minimum payments. Some people still have them.
MoreLess about Stakeholder pension
Their charges are capped by law. You can still open one.
For example: Someone finds an old stakeholder pension from 2003 and checks how its charges compare with newer pensions.
- Staking (crypto)
- Locking up crypto coins to help run a blockchain in return for rewards.
- In plain English:You lock up your crypto to help keep a blockchain running and get more coins as a reward. Your coins can be stuck, and their price can still fall.
MoreLess about Staking (crypto)
Coins may be locked for a time. The platform can fail or the coin can fall.
For example: Someone stakes their ether and receives new coins as rewards each week, which HMRC treats as income.
- Stamp Duty Land TaxApplies in England, Northern Ireland
- Tax on buying property or land in England and Northern Ireland.
- In plain English:When you buy a home or land in England or Northern Ireland, you pay this tax on the part of the price above a set amount.
MoreLess about Stamp Duty Land Tax
There's none on a home's first £125,000. Scotland and Wales have their own taxes instead.
Higher rates apply to second homes and buy-to-let. First-time buyers can get relief.
For example: On a £300,000 home that isn't your first, stamp duty is £5,000.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: Stamp Duty Land Tax
- Standard variable rate (SVR)
- A lender's default mortgage rate when your deal ends.
- In plain English:When your fixed or tracker mortgage deal ends, you move onto the lender's own rate, which is usually much higher. Switching to a new deal can save money.
MoreLess about Standard variable rate (SVR)
Many people lapse onto it without noticing. Switching can save a lot.
For example: Someone's two-year fix ends and they move to the lender's standard variable rate, almost doubling their payments.
- Article inside Foliopeak: Fixes, Trackers, and What Overpaying Really Does
- Start Up LoansUK
- Government-backed personal loans for starting a business, with free mentoring.
- In plain English:A personal loan backed by the government to help you start or grow a business, with free mentoring. You have to pay it back yourself.
MoreLess about Start Up Loans
You'll need a business plan. You must be over 18 and live in the UK.
For example: Someone borrows £10,000 through a start-up loan to open a bakery, with a mentor for the first year.
- See also: British Business Bank
- Starting rate for savingsUK
- Extra tax-free savings interest for people on low incomes.
- In plain English:If your other income is low, you can earn extra savings interest without paying tax, on top of the usual savings allowance.
MoreLess about Starting rate for savings
It's up to £5,000 of savings interest taxed at 0%. Each £1 of other income above the Personal Allowance reduces it by £1.
It's on top of the personal savings allowance. It helps people with low earnings and some savings.
For example: A retired person whose only income is a small pension below the Personal Allowance can earn up to £5,000 of savings interest tax-free under the starting rate.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: Tax on Savings Interest
- State PensionUK
- The regular pension the government pays from State Pension age.
- In plain English:A regular payment from the government once you reach State Pension age. How much you get depends on your National Insurance record.
MoreLess about State Pension
The full new State Pension is £241.30 a week, usually for 35 qualifying years of National Insurance; you need 10 for any at all.
It rises each year under the triple lock. It's taxable income.
For example: The full new State Pension is £241.30 a week, about £12,548 a year, with 35 qualifying years.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: The State Pension, and Your National Insurance Record
- State Pension ageUK
- The age you can start getting the State Pension.
- In plain English:The age you can start getting your State Pension. It's going up over time and depends on when you were born.
MoreLess about State Pension age
It runs from 66 for people born before 1961 up to 68 for the youngest, and is under review.
Check yours on the government website. It may change again.
For example: Someone born in 1965 checks online and finds their State Pension age is 67.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: The State Pension, and Your National Insurance Record
- State Pension deferralUK
- Putting off your State Pension to get more later.
- In plain English:If you don't claim your State Pension as soon as you can, you get a bit more each week when you do start.
MoreLess about State Pension deferral
It goes up a little for every nine weeks you put it off, with no upper limit on how long you wait.
It takes many years to make up the payments missed.
For example: Someone keeps working past State Pension age and defers for a year, getting a higher weekly pension for life.
- Article inside Foliopeak: Deferring the State Pension
- State Pension forecastUK
- An estimate of how much State Pension you could get.
- In plain English:An estimate from the government of how much State Pension you could get and when. You can check yours online for free.
MoreLess about State Pension forecast
It shows if you have gaps. You can see whether paying for missing years would help.
For example: Someone checks their forecast at 50 and finds they can fill two missing years to get a higher pension.
- Article inside Foliopeak: The State Pension, and Your National Insurance Record
- Statute-barred debtUK
- A debt that is too old to be chased through the courts.
- In plain English:If a lender hasn't chased a debt and you haven't paid or admitted it for years, they can't take you to court over it. The time limit differs in Scotland.
MoreLess about Statute-barred debt
The clock restarts if you make a payment or admit the debt in writing. It still shows on your credit file until six years after default.
For example: A debt collector chases someone for a debt they haven't paid or acknowledged in eight years. It's statute barred.
- Statutory Adoption PayUK
- Pay from your employer when you adopt a child, at the same rates as maternity pay.
- In plain English:When you adopt a child, your employer must pay you a set amount for a number of weeks, the same as maternity pay.
MoreLess about Statutory Adoption Pay
It's paid for up to 39 weeks at the same rates as Statutory Maternity Pay.
You need to have worked for your employer for a set time. Employers can pay more.
For example: A couple adopts a child. One takes adoption leave and pay, and the other takes paternity leave.
- Article inside Foliopeak: Maternity, Paternity and Shared Parental Pay: What You Get, and What a Year of Leave Changes
- Statutory Maternity Pay (SMP)UK
- The minimum pay your employer must give you on maternity leave.
- In plain English:The least your employer must pay you while you're on maternity leave, for up to thirty-nine weeks. Some employers pay more.
MoreLess about Statutory Maternity Pay (SMP)
It's most of average earnings for the first six weeks, then £194.32 a week, or less for lower earners. It needs average earnings of at least £129 a week.
Employers can pay more under their own schemes. It's taxed like normal pay.
For example: On £600 a week, you'd get £540 a week for the first six weeks, then £194.32 a week.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: Maternity, Paternity and Shared Parental Pay: What You Get, and What a Year of Leave Changes
- Statutory Paternity Pay (SPP)UK
- The minimum pay your employer must give you on paternity leave.
- In plain English:The least your employer must pay you for up to two weeks off after your partner has a baby or you adopt.
MoreLess about Statutory Paternity Pay (SPP)
It's paid for up to 2 weeks at £194.32 a week, or 90% of average weekly earnings if that is less. It needs average earnings of at least £129 a week and 26 weeks with the employer.
Leave can be taken any time within the first year. Some employers pay more.
For example: A father takes two weeks of paternity leave after the birth and gets statutory paternity pay from his employer.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: Maternity, Paternity and Shared Parental Pay: What You Get, and What a Year of Leave Changes
- Statutory Sick Pay (SSP)UK
- The minimum pay your employer must give you when you're too ill to work.
- In plain English:If you're too ill to work, your employer must pay you at least this weekly amount, for up to twenty-eight weeks.
MoreLess about Statutory Sick Pay (SSP)
It's paid from the first day off for up to 28 weeks, at a weekly rate the government sets or 80% of average weekly pay if that is less.
It's paid by employers. You need a fit note after seven days.
For example: Someone is off sick for two weeks and gets statutory sick pay from their employer.
- Article inside Foliopeak: No Sick Pay, No Redundancy
- Stimulus
- Spending, tax cuts or lower interest rates used to boost a weak economy.
- In plain English:When the economy is weak, the government or central bank tries to boost it with spending, tax cuts or lower interest rates.
MoreLess about Stimulus
In 2020 governments spent huge sums to support people and businesses. Too much can fuel inflation.
For example: During lockdowns, the government paid wages through furlough and gave grants to businesses.
- See also: Fiscal policy
- Stock split (share split)
- Dividing each share into several cheaper ones without changing their total value.
- In plain English:A company splits each share into several cheaper ones. You own more shares, but they're worth the same in total.
MoreLess about Stock split (share split)
Companies do it to make shares feel more affordable. It doesn't change your total value.
For example: A company splits each £100 share into ten £10 shares. Someone with 10 shares now has 100, still worth £1,000.
- Stockbroker
- A firm that buys and sells investments for you.
- In plain English:A firm that buys and sells shares and other investments for you. Most people now use online brokers or platforms.
MoreLess about Stockbroker
Some offer advice; most online ones don't. Check they're FCA authorised.
For example: Someone uses an online stockbroker app to buy shares in a UK company.
- Stoozing
- Borrowing on a no-interest credit card and saving the money to earn interest.
- In plain English:Borrowing on a credit card with no interest, putting the money in savings to earn interest, then paying the card off. Miss a payment and it can backfire.
MoreLess about Stoozing
It affects your credit file. It's less worthwhile when savings rates are low.
For example: Someone borrows £3,000 on a 0% card, puts it in savings at 4% and pays the card off before the offer ends.
- Article inside Foliopeak: Credit Cards and Borrowing: What It Really Costs
- Stop-limit order
- An order to sell at a set price or better once a share falls to a trigger level.
- In plain English:It works like a stop-loss, but you also set the lowest price you'll accept. You avoid a bad price, but you might not sell.
MoreLess about Stop-limit order
You set two prices: the stop, which starts the order, and the limit, the lowest price you'll take.
A plain stop-loss always sells, so the choice is between being sure of selling and being sure of the price.
For example: Someone sets a stop at £9 and a limit at £8.80. The share drops to £8.50 overnight, so nothing sells.
- Article inside Foliopeak: How Buying and Selling Shares Works
- Stop-loss order
- An order to sell automatically if a price falls to a set level.
- In plain English:You set a price, and if your share falls to it, it's sold automatically to stop bigger losses. In a fast fall, it may sell for less.
MoreLess about Stop-loss order
It can help limit losses but may sell on a short dip. Guaranteed stops cost more.
For example: Someone sets a stop loss at £8 on a share bought at £10. The price drops overnight to £7, and it sells at about £7.
- Store card
- A credit card for one shop, usually with high interest.
- In plain English:A credit card you can only use at one shop. It often has high interest, so it can be an expensive way to borrow.
MoreLess about Store card
Shops often offer discounts for signing up. Paying off in full avoids the high rate.
For example: Someone opens a store card for 10% off a purchase, then pays it off straight away to avoid the high interest.
- Striking off (closing a company)UK
- Removing a company from the register so it stops existing.
- In plain English:When a company is removed from the Companies House register, it stops existing. Any money left in it can go to the government.
MoreLess about Striking off (closing a company)
Before applying, the company must not have traded for three months. Companies House can also strike off companies that don't file.
For example: A director closes their dormant company by applying to have it struck off.
- See also: Liquidation
- Student and graduate bank accounts
- Bank accounts for students and recent graduates, usually with an interest-free overdraft.
- In plain English:Bank accounts for students and new graduates, usually with an overdraft you don't pay interest on, up to a limit.
MoreLess about Student and graduate bank accounts
Compare them on overdraft size and how long it stays free. Using the overdraft for essentials only helps.
For example: A student uses a free overdraft during university, then has three years on a graduate account to pay it off.
- Article inside Foliopeak: Student Finance in England: What a New Student Borrows, and What They Repay
- Student loanUK
- A government loan for university, repaid through your pay once you earn enough.
- In plain English:Money from the government to pay for university. You pay it back through your pay once you earn over a set amount, and any left is wiped after a set time.
MoreLess about Student loan
Most plans take 9% of income above a threshold that depends on the plan. A Postgraduate Loan takes 6% above its own threshold.
It doesn't affect your credit file. Interest rates vary by plan.
For example: Earn £35,000 on Plan 2 and you repay 9% of the £5,615 above £29,385, about £505 a year.
Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)
- Article inside Foliopeak: Student Loan Repayment Plans
- Subprime lending
- Lending to people with poor credit records, at higher interest rates.
- In plain English:Lending to people with poor credit at higher interest rates. Too much risky subprime mortgage lending helped cause the two thousand eight crash.
MoreLess about Subprime lending
Lenders charge more to cover the risk. Rules on lending have tightened since 2008.
For example: Before 2008, many US lenders gave mortgages to people with poor credit and little proof of income.
- See also: Credit crunch
- Sunk cost
- Money already spent that you can't get back, which shouldn't drive what you do next.
- In plain English:Money you've already spent and can't get back. It shouldn't affect what you do next, even though it often does.
MoreLess about Sunk cost
Asking "would I buy this today?" helps avoid the trap.
For example: Someone holds a share that's fallen by half, hoping to get back to what they paid, rather than asking if it's still worth holding.
- Article inside Foliopeak: Why Good Plans Get Abandoned
- Superannuation (Australia)
- Australia's workplace pension, which many people who worked there still have.
- In plain English:The name for Australia's workplace pension. If you worked there, you may have some to claim.
MoreLess about Superannuation (Australia)
It's often called "super". Australian tax rules can make transfers costly.
For example: Someone who worked in Australia for five years leaves their super pot there and checks its rules before moving home.
- See also: QROPS (moving a pension abroad)
- Support for Mortgage Interest (SMI)UK
- A government loan towards mortgage interest for people on certain benefits.
- In plain English:If you get certain benefits, the government can lend you money towards your mortgage interest. It's paid back when you sell your home.
MoreLess about Support for Mortgage Interest (SMI)
It's paid after a waiting period. You need to agree to it as a loan.
For example: Someone on Pension Credit gets help with their mortgage interest, paid straight to their lender and repaid when the house is sold.
- Article inside Foliopeak: Debt Help: Free Advice and the Formal Options
- Sure Start Maternity GrantApplies in England, Wales, Northern Ireland
- A one-off payment towards the costs of a first baby for families on benefits.
- In plain English:A one-off payment to help with the costs of a new baby, usually the first, if you get certain benefits. In Scotland, there's a different grant.
MoreLess about Sure Start Maternity Grant
It's for the first child, or more in some cases like twins. You must claim within set time limits.
For example: A first-time mum on Universal Credit claims the Sure Start Maternity Grant to help buy baby things.
- Survivor's pension
- A pension paid to a partner or children after a pension scheme member dies.
- In plain English:When someone in a pension scheme dies, their husband, wife, partner or children may get a pension from it.
MoreLess about Survivor's pension
Rules vary by scheme. Some need you to be married; others accept partners.
For example: A widow gets half of her late husband's workplace pension as a survivor's pension for life.
- Article inside Foliopeak: When Someone Close Dies: The Money in the First Months
- Sustainability labelsUK
- Official labels that show a UK fund meets set green standards.
- In plain English:Official labels the FCA lets UK funds use only if they meet strict standards for being sustainable, to help stop greenwashing.
MoreLess about Sustainability labels
Funds without a label can still use some sustainability words with care. Labels came in from 2024.
For example: A fund using the Sustainability Impact label must show how it measures its good effects.
- Swap rates
- The rates banks use to price fixed-rate mortgages, which move with what markets expect.
- In plain English:The rates banks pay to fix their own borrowing costs. When swap rates rise, fixed-rate mortgages usually get more expensive soon after.
MoreLess about Swap rates
They're published daily. Brokers watch them to predict mortgage rate changes.
For example: Swap rates fall on news inflation is easing, and lenders cut their fixed mortgage rates the next week.
- See also: Fixed-rate mortgage
- SWIFT
- The network banks use to send payments between countries.
- In plain English:The secure messaging network banks use to send money between countries. Being cut off from it makes trading very hard.
MoreLess about SWIFT
It's used worldwide. International payments can take a few days and cost fees.
For example: Someone sends money to a relative in India using the bank's SWIFT code and their account number.
- See also: IBAN (International Bank Account Number)
- Systematic and unsystematic risk
- Risk that hits a whole market, compared with risk that hits just one company.
- In plain English:Some risks hit almost every share at once, so nothing fully protects you. Others only hit one company, and owning lots of companies softens the blow.
MoreLess about Systematic and unsystematic risk
It is easy to mix up with systemic risk, which is the danger of the financial system itself breaking down.
Beta measures how much an investment moves with the whole market, so it is a guide to its systematic risk.
For example: A tracker fund holding hundreds of companies barely notices one of them failing, but it still falls when the whole market falls.
- Article inside Foliopeak: Diversification and Rebalancing, Briefly
- Systemic risk
- The danger of trouble at one bank spreading through the whole financial system.
- In plain English:Banks lend to each other and rely on each other. If one gets into trouble, it can pull others down with it, like a row of dominoes.
MoreLess about Systemic risk
It isn't the same as market risk, sometimes called systematic risk, which is prices across a whole market falling together. Systemic risk is about the system itself breaking down.
Since 2008, big UK banks must hold more of their own money as a cushion, pass regular stress tests and keep everyday banking apart from riskier investment banking.
For example: In 2008 the US bank Lehman Brothers collapsed, and within weeks banks around the world had stopped lending to each other.
- Article inside Foliopeak: Systemic Risk
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MoreLess about Social Security (US)
Each country pays its own pension for the years worked there. You can claim the US one while living in the UK.
For example: Someone who worked in the US for 10 years claims US Social Security while living in the UK.