Life
insurance

Terminology

Interest Only Mortgage

This is where your monthly mortgage payments only cover the interest that's being charged on your mortgage.

Repayment Mortgage

This is where your monthly mortgage payments cover both the capital (the original amount borrowed) and the interest repayments.

Income Tax

Income tax is a tax paid on income. It is paid by employees and people who are self-employed and may also be payable if you are not working but you have an income, such as a retirement pension or an occupational pension.

Capital Gains Tax

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxable on the 'gain' (profit). This doesn't apply when you sell certain exempt assets, such as your main home.

Inheritance Tax

Inheritance Tax is the tax that is paid on your 'estate' when you die. Broadly speaking this is everything you own at the time of your death, less what you owe. It's also sometimes payable on assets you may have given away during your lifetime. Assets include things like property, possessions, money and investments.