Accumulation (acc) units
Fund units that reinvest dividends automatically instead of paying them out as cash.
A working vocabulary
The words UK investing actually uses.
Twenty-eight terms, written the way we use them on the rest of this site. Filter as you read.
Active fund
A fund whose manager tries to beat a stated index after fees. Success is not guaranteed and costs are usually higher than a tracker.
Annual allowance
The maximum you can pay into pensions in a tax year with tax relief — £60,000 in 2026/27, or 100% of UK relevant earnings if lower, with tapering and MPAA exceptions.
Bid-offer spread
The gap between the price you pay to buy an ETF (or similar) and the price you would receive to sell it at the same moment.
Bonds
Loans to a government or company. They pay interest and repay capital, and their prices move when interest rates and credit risk change.
Capital gains tax (CGT)
Tax on profits when you sell certain assets outside an ISA or pension. The 2026/27 annual exempt amount for individuals is £3,000. Rates are 18% and 24% for most gains from 6 April 2026.
Client money / client assets
Cash or investments an authorised firm holds for you, segregated from its own. If the firm fails, these should be returned; FSCS may help if they cannot.
Dividend allowance
The first £500 of dividends outside ISAs and pensions is tax-free in 2026/27. Dividends inside those wrappers do not use the allowance.
ETF
Exchange-traded fund: a fund that trades on a stock exchange throughout the day, typically tracking an index at a low ongoing charge.
FCA
The Financial Conduct Authority. UK regulator for most investment firms. Check the Register before you send money.
FSCS
Financial Services Compensation Scheme. Protects eligible cash and, in some cases, investments if an authorised firm fails — not if markets fall.
FTSE 100
An index of the largest companies listed in London. It is not a complete picture of the UK, or of the world.
GIA
General investment account: a dealing account with no ISA or pension tax wrapper. Gains and dividends may be taxable.
Gilt
A UK government bond. Often treated as lower credit risk than company bonds; still sensitive to interest rates.
Income (inc) units
Fund units that pay dividends out to you, rather than reinvesting them.
Index fund / tracker
A fund designed to match an index, minus fees, rather than beat it.
ISA
Individual Savings Account. A UK tax wrapper. Cash, stocks and shares, Lifetime and Innovative Finance variants share a £20,000 adult limit in 2026/27.
Junior ISA (JISA)
An ISA for under-18s, £9,000 in 2026/27, usually locked until the child turns 18.
Lifetime ISA (LISA)
An ISA with a 25% government bonus on up to £4,000 a year, for a first home or age 60, with a 25% charge on most other withdrawals.
Lump sum allowance
The cap on tax-free pension lump sums for most people, currently £268,275, replacing the old lifetime allowance framework for this purpose.
Money purchase annual allowance
A reduced £10,000 pension allowance that can apply after you flexibly access a defined-contribution pot.
OCF / TER
Ongoing Charges Figure / Total Expense Ratio: the annual percentage cost of running a fund, excluding some dealing costs.
OEIC / unit trust
Common UK fund structures, usually priced once a day, held as units or shares in a pool of assets.
Personal allowance
The amount of income you can receive each year before UK income tax — £12,570 in 2026/27 for most people.
Platform
The firm that holds your ISA or SIPP and lets you buy funds. Platform fees sit on top of fund fees.
SIPP
Self-Invested Personal Pension. A pension wrapper with a wide investment range, subject to pension tax rules and access ages.
Stocks and shares ISA
An ISA that can hold funds, ETFs, shares and certain other investments. Growth and withdrawals are free of UK CGT and dividend tax under current rules.
Volatility
How much a price jumps around. It is not the same thing as the chance of permanent loss, though the two get confused in a falling market.
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Crocinxeno is not authorised by the Financial Conduct Authority and does not provide personal financial advice, recommendations or promotions of specific products. Investing involves risk. The value of investments and the income from them can fall as well as rise. Tax treatment depends on your circumstances and may change.