Landlord Glossary

Plain-English definitions of UK landlord, lettings, tax and property investment terms.

A

AST (Assured Shorthold Tenancy): The standard residential tenancy in England and Wales. Created by the Housing Act 1988, ASTs allow Section 21 'no-fault' possession after the fixed term. Under the Renters' Rights Act (commencement expected 1 May 2026), all ASTs convert to periodic assured tenancies and Section 21 is abolished.

BADR (Business Asset Disposal Relief): Formerly Entrepreneurs' Relief. A 14% Capital Gains Tax rate (2025-26, rising to 18% from April 2026) on qualifying business disposals up to a £1m lifetime limit. Standard buy-to-let property does not qualify; furnished holiday lets lost BADR eligibility on 6 April 2025.
BTL (Buy-to-Let): Property purchased specifically to let to tenants. BTL mortgages have stricter affordability tests (ICR), higher deposits (typically 25%+), and attract the 5% SDLT surcharge on additional properties (2025-26 England rate).

CGT (Capital Gains Tax): Tax on the profit when you sell a UK property that isn't your main home. 2025-26 rates: 18% (basic rate) or 24% (higher rate) on residential property, after the £3,000 annual exempt amount. Must be reported and paid within 60 days of completion.
CP12 (Gas Safety Certificate): The annual landlord gas safety record. A Gas Safe registered engineer must check every gas appliance, flue and pipework. The CP12 must be given to existing tenants within 28 days and to new tenants before they move in.

EICR (Electrical Installation Condition Report): A mandatory inspection of fixed electrical installations in rented property in England, required at least every 5 years (or sooner if the report demands). The landlord must supply a copy to existing tenants within 28 days and to new tenants before occupation.
EPC (Energy Performance Certificate): A rating of a property's energy efficiency from A (best) to G (worst), valid for 10 years. Currently a minimum of E is required to let. Proposed rules require all new tenancies to meet C from 2028 and all existing tenancies by 2030.

FHL (Furnished Holiday Let): A short-term let meeting HMRC's availability and letting tests. The FHL tax regime — which gave landlords mortgage interest relief, capital allowances and CGT reliefs — was abolished from 6 April 2025. FHLs are now taxed as standard rental property.

HMO (House in Multiple Occupation): A property let to 3+ people forming more than one household, sharing facilities. A 'large HMO' (5+ occupants in 2+ households) requires a mandatory licence; many councils also operate additional or selective licensing covering smaller HMOs.

ICR (Interest Cover Ratio): A buy-to-let lender's affordability test: rental income as a percentage of mortgage interest at a stressed rate. Typical minimums are 125% for basic-rate taxpayers, 145% for higher-rate, with stress rates of 5.5–8.5%.

LTV (Loan-to-Value): The mortgage amount as a percentage of property value. BTL lenders typically cap at 75–80% LTV. Lower LTV (more deposit) unlocks better rates, especially below 60%.

MTD (Making Tax Digital): HMRC's mandatory digital record-keeping and quarterly reporting regime. MTD for Income Tax starts 6 April 2026 for landlords with gross property + self-employed income above £50,000, dropping to £30,000 (April 2027) and £20,000 (April 2028).

NRLA (National Residential Landlords Association): The largest UK landlord membership body, formed by the merger of the NLA and RLA in 2020. Provides legal advice, document templates, training and lobbying on behalf of private landlords.

PRT (Private Residential Tenancy): The standard tenancy type in Scotland since December 2017. Open-ended (no fixed term), no Section 21 equivalent, and possession requires one of 18 statutory grounds via the First-tier Tribunal.

SA105: The Self Assessment supplementary pages for UK property income. All landlords with rental income above £1,000 (the property allowance) must complete SA105 alongside their main SA100 return.
SDLT (Stamp Duty Land Tax): The transaction tax on property purchases in England and Northern Ireland. Additional dwellings (BTL, second homes) attract a 5% surcharge from 31 October 2024. Scotland uses LBTT (with ADS), Wales uses LTT.
Section 21: The 'no-fault' possession notice under the Housing Act 1988 allowing landlords to recover an AST without giving a reason. Abolished by the Renters' Rights Act, expected to commence 1 May 2026 — after which all possession requires Section 8.
Section 24: The Finance (No. 2) Act 2015 provision restricting mortgage interest relief for individual buy-to-let landlords. Interest is no longer deductible from rental income; instead landlords receive a 20% basic-rate tax credit. Limited companies are exempt.
Section 8: The fault-based possession notice under the Housing Act 1988. Landlords must cite at least one of the statutory grounds (e.g. rent arrears, anti-social behaviour, breach of tenancy). Notice periods and mandatory/discretionary status vary by ground.

TOMS (Tour Operators' Margin Scheme): A specialist VAT scheme that can apply to UK holiday let operators bundling accommodation with other services (e.g. transport, tours). VAT is calculated on the margin rather than the full sale price. Specialist advice is essential.

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