The Deal Score, and why it is computed after tax

·4 min read
The Deal Score is a 0–100 figure built from nine weighted components — margin, resilience, exit optionality, capital recycling, seller motivation, completion probability, jurisdiction readiness, protection status and valuation confidence. It is computed on profit after tax, never before it, because a pre-tax number flatters every deal. Hard gates cap it: a Seller Protection block holds it at 35 whatever the margin says.

A single number for a property deal is only worth having if it cannot be gamed and it says why it is what it is. A score that is one unexplained figure invites the user to argue with it; a score that shows its working invites them to act on it. The Deal Score is built to be the second kind.

What goes into the number?

Nine components, each weighted and each carrying its own sentence of reasoning. None of them is a vibe. They are the things that actually decide whether a purchase is worth making and whether it survives contact with a completion statement.

The nine components, each scored with its reasoning
Margin
Profit after tax against the finished value
Resilience
How the deal holds under the Red Team stresses
Exit optionality
How many of the exit matrix routes actually work
Capital recycling
How much deployed cash comes back on exit
Seller motivation
Whether there is a real reason to transact
Completion probability
Whether the transaction is likely to complete at all
Jurisdiction readiness
Whether the nation's tax and rules are fully modelled
Protection status
Whether Seller Protection has anything to say
Valuation confidence
How well the open market value is evidenced

Because each component is scored separately and published with its reasoning, two deals that land on the same total for different reasons do not look identical. One scoring 61 on a thin margin and a strong exit is a different proposition from one scoring 61 on a fat margin and a single fragile exit, and the breakdown says so.

Why after tax, and not before?

Profit is taxed, and transfer tax is paid on the way in. A score computed before either overstates every outcome — and it overstates the marginal ones most, which is exactly where the decision is being made. Nobody needs a score to reject an obvious dog or accept a once-in-a-decade bargain; the score earns its place on the deals in between, and those are the ones a pre-tax figure gets wrong.

So the additional dwelling surcharge is charged into the deployed total before true discount is computed, and corporation tax is charged against profit before the margin component is scored. The number that comes out is duller than a headline and it is the one that holds up.

What can cap a good score?

Hard gates, and they are not negotiable. A Seller Protection block caps the score at 35 and forces a rejection whatever the margin says, because converting someone's circumstances into a discount is the one thing this platform exists to refuse. A single-factor Red Team loss caps the score too — a deal that loses money when one variable moves is fragile, and no amount of headline margin buys that back.

A jurisdiction with no complete tax model cannot return a full score either. An unknown nation routes to not-supported rather than defaulting to England, because a confident score built on the wrong tax tables is worse than an honest refusal to score.

What the number is not

  • It is not a valuation. It scores a deal, not a property, and the same house is a different score at a different price.
  • It is not a promise. Completion probability is a component precisely because a third of agreed sales fall through.
  • It is not a pre-tax figure dressed up. The tax is in the number, not in a footnote beneath it.
  • It is not a figure you can argue the engine out of. The reasoning is published so you can act on it, not appeal it.

That is the whole proposition. One number, computed the same way every time, on profit after tax, carrying the reasons it is what it is — and capped, hard, where a person's circumstances or a deal's fragility says it must be.

Common questions

Is the Deal Score a valuation?
No. It scores a deal at a price, not a property. Move the purchase price and the score moves, because margin, true discount and capital recycling all depend on what you pay.
Why can a high-margin deal still score badly?
Because margin is one component of nine, and because the hard gates override the total. A fat margin on a fragile deal that loses money when a single variable moves is capped by the Red Team gate, and a fat margin on a blocked deal is capped at 35.
What does computing after tax actually change?
It lowers the score on every deal and lowers it most on the marginal ones. Transfer tax is charged into the deployed total and corporation tax against profit before the margin component is scored, so the number reflects what is left rather than what was gross.

Sources

  • Corporation Tax rates and reliefs

    The main rate, the small profits rate and marginal relief between them. Published by HM Revenue & Customs; the link goes to their site rather than to the document, because a deep link into guidance is a slug that changes without notice.

  • Stamp Duty Land Tax rates

    The bands and rates in force, and the reliefs that alter them. Published by HM Revenue & Customs; the link goes to their site rather than to the document, because a deep link into guidance is a slug that changes without notice.

  • Higher rates for additional dwellings

    The surcharge on a second residential property, and that a company pays it from the first pound. Published by HM Revenue & Customs; the link goes to their site rather than to the document, because a deep link into guidance is a slug that changes without notice.

  • Price Paid Data

    Every registered residential sale in England and Wales since 1995. Published by HM Land Registry; the link goes to their site rather than to the document, because a deep link into guidance is a slug that changes without notice.

Terms used on this page

true discount
Total money deployed measured against open market value, rather than the headline discount on the purchase price.
Deal Score
A 0-100 score computed from nine weighted components, always on profit after tax, never before it.
additional dwelling surcharge
Extra transfer tax charged when the buyer already owns another property, or is buying through a company.
seller protection
Checks that can stop a transaction outright where a seller may not be able to give free and informed consent.
capital recycling
How much of the cash put into a deal comes back out on exit, and how much stays trapped in the property.
Red Team
Nine stress scenarios run against every deal, with single-factor losses treated more seriously than compound ones.
exit matrix
Every way out of a property costed side by side: sell, refinance and hold, rent, or assign the contract.
completion probability
The chance a transaction actually completes, derived from the chain, the tenure, the finance and what the seller needs.

Related reading

Where to next

Component descriptions reflect the Lode scoring engine; every live score carries the same reasoning.

Figures are screening estimates, not advice. Tax figures require professional review.