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Accountant

A professional who maintains accounts for businesses and individuals. Businesses use accountants for services such as maintaining financial records, tax affairs and payroll services. Individuals sometimes use accountants for tax returns.

Additional Voluntary Contributions (AVCs)

When you top-up an occupational pension, by making extra contributions into a scheme that’s run by your employer, you make an ‘additional voluntary contribution’.

Administrative and public law

This is the law that governs the way public bodies carry out their statutory duties.

Adviser

A professional, who is qualified to give you advice. Among others, this could be an independent financial adviser (IFA), a whole-of-market mortgage adviser, a solicitor or an accountant.

Advocacy

Legal representation in a hearing, usually carried out by a barrister or solicitor on your behalf.

Agricultural law

This is the law that governs the farming sector, including tax, trusts and property rights connected with agricultural land.

Annual allowance

This is the maximum amount of money you can put into your pension funds in a given tax year, and still claim tax relief.

Annual statement

A statement from your financial services product provider sent to you once a year, showing how much you've paid, what your plan is worth (and if it’s in relation to a loan, what you still owe).

Annuity

At retirement – but before you reach age 75 – you have to buy an annuity with your pension fund. It’s a payment that’s usually paid monthly, which you’ll receive as a guaranteed regular income during your retirement.

Annulment

In England and Wales, this is when a marriage is declared void by a court, either because it was not legally valid when it took place or because it has since become not legally valid. In Scotland this is called a void marriage as the term ‘marriage annulment’ is not a legal term used in Scotland. Legal advice should be sought as this is a complex area.

Approval in principle

This is the certificate that some lenders issue to show how much they’d be prepared to lend you. It’s not a guarantee, but it can be helpful when you’re looking at property to purchase.

APR

Annual Percentage Rate. The figure next to this abbreviation shows you the total cost of taking out a loan, as a percentage, taking into account the term, interest rate and other costs.

Asset allocation

Asset allocation is the process of putting your investment into a range of different investments such as equities, gilts, property and bonds. By diversifying the assets into which you invest, you can protect against any reduction in value of any one or more asset class. Asset allocation depends on your investment plans and attitude to risk.

Asylum

When you ‘seek asylum’, you look for protection in another country. Non-UK residents can apply for asylum as soon as they reach the UK, although they may need legal help to be recognised as a refugee.

Authorised firm

An authorised firm is one that has permission from the Financial Services Authority (FSA) to carry out regulated activities.

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