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Glossary
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Income Tax
This is a tax levied directly on personal income which includes earned income such as salaries and commissions and unearned income such as dividends, interest and rents.
Information Commissioners Office
An independent offiice appointed by the Crown. Their mission is to 'uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals'. The key oversight that they have which affects British Pearl is our requirement to adhere to applicable data protection laws in the U.K. and abroad.
Information Pack
Contains details of the investment opportunity and financial information, supported by professional reports from solicitors and surveyors.
Interest Payments
Typically, a monthly payment by the SPV to the Loan Investors determined by the interest rate on the loan. As a borrower, an interest payment represents the rate charged for being lent funds. As a lender, interest payments represent income.
Investment
Refers to the shares in or loans to a specific property owning company.
Investment Cost
The price paid for the property plus other costs including (but not limited to) transaction costs and all associated development and/or refurbishment costs that may be incurred. This will be the amount of funds raised from Share Investors and Loan Investors.
Investment Exit Date
The intended exit date for the investment when the property will be put up for sale on the open market, assuming the investors choose not to renew (if the invstment is a rental property). The Investment Exit Date for rental properties is likely to be five years and up to two years for developments.
Investment Term
This is the period of time that an investment will run for. In the case of British Pearl, the investment term is the time for which a property will be listed (and traded) on the British Pearl platform before being sold and the net proceeds distributed to the Share Investors and Loan Investors. The Investment Term may differ in practice to the one indicated in the Information Pack, if the Investment and Risk Team believes it is in the best interests of investors to change it.
Individual Savings Account ('ISA')
Introduced by the UK government in 1999 to encourage individuals to invest by offering tax free income and capital gains on any investments held within an ISA. There are various types of ISA and each has restrictions on the types of investment that can be held within it. The British Pearl ISA is an Innovative Finance ISA.
Innovative Finance ISA
Introduced by the UK government in 2016 as a new type of ISA. The British Pearl ISA is an Innovative Finance ISA which allows investors to make loans and benefit from paying no Income Tax on any interest received nor any Capital Gains Tax on any gains (which might be made in the Resale Market).