This glossary of terms has been composed by FIRST STRATA to provide you with an easily accessible and comprehensive description of the many terms frequently used in all aspects of land sales.
We trust you will find it both useful and informative.
Derived from the French cadastre and meaning related to a register of land ownership, usually for taxation assessment purposes.
A map showing the boundaries of property ownership for the recording of title and for taxation purposes.
A survey carried out to record the boundaries of a property on a plan.
One of the twelve periods of 28 (or in leap years 29), 30 or 31 days into which a calendar year is divided. Cf LUNAR MONTH.
A period of 365 consecutive days or, if the period included February 29, 366 consecutive days (leap year). CfFINANCIAL YEAR; FISCAL YEAR.
The process of calling upon the holder of a security to pay an outstanding amount or balance, in the case of a security issued at a price of which only part is payable at the outset, the remainder being due at a later date only when required by the issuing company. The date and amount of any call will be governed by the terms stated at the date of issue. A call should be distinguished from an instalment, which is automatically due to be paid at a fixed date determined at the time the security was issued.
Under the current town and country planning legislation, a requirement by the appropriate Secretary of State that a planning application be transferred to him for decision instead of by the relevant local planning authority.
A loan which is repayable in full to the lender on demand.
1. A contract whereby one party has the option to purchase the other party’s interest in a property, usually within a specified time, at a stated or calculable price and/or in defined circumstances. It is binding against a third party only if registered as an estate contract.
2. The Stock Exchange term for a right to buy securities at a specific future time and at a defined price. CfPUT OPTION. See PUT AND TAKE OPTION.
An abbreviation for Centre for Advanced Land Use Studies, a department of the College of Estate Management. The centre organises conferences and study tours for qualified surveyors and others and encourages research which will be of practical value to the profession.
An auction which is continued while a candle is burning. The last bid before the flame goes out, or reaches a pre-determined level, is the one which is accepted.
February 2. The Feast of the Purification of the Virgin Mary. One of the half-quarter days or, in Scotland, term days. See QUARTER DAYS.
Wealth, usually derived from direct or indirect savings, in the form of permanent or durable assets or employed in industrial, commercial or other productive enterprises as the financial base upon which they are established and operate. This is with a view to making a profit which may be either income or a capital gain, or both. Typically it is the money invested by the purchase of stocks and shares in a corporate body, the aggregate of which represents the capital of that company. In taxation, the distinction between capital and income has to be drawn, as different rates of tax often apply to each. Since it is not always obvious whether something is capital or income, rules have been made enabling the Inland Revenue to determine which is which. CfINCOME.
Under the Capital Allowances Act 1968 as amended, allowances available to owners against income tax or corporation tax for capital expenditure on certain buildings and structures (including site clearance). Generally the kinds of allowance available include one or more of the following:
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The increase in the capital value of an asset over a given period, usually expressed as a percentage of the initial value.
Money spent on acquiring or improving capital assets, such as land, buildings, plant and machinery, as distinct from expenditure of a revenue nature such as money spent on the maintenance of existing assets.
For capital gains tax purposes, an increase in the value of a capital asset, not being stock-in-trade, as computed in accordance with the Capital Gains Tax Act 1979.
A tax on the gain accruing to a taxpayer through the disposal of a capital asset if sold on or since April 6 1965. Special rules applied where the asset was acquired before that date. There are various exemptions, reliefs and concessions. Companies pay a form of corporation tax on capital gains. Since April 1982 the taxpayer has been enabled to receive some allowance for inflation during the period of ownership, ie indexation. Under the Finance (No2) Act 1988 for disposals on or after April 1 1988 CGT is generally only payable on gains arising since April 1 1982. See ROLL-OVER RELIEF; TIME APPORTIONMENT; WASTING ASSET.
See GEARING.
Work carried out on an asset with a view to enhancing its value, but not including repairs or maintenance. See ENHANCEMENT EXPENDITURE.
