Takaful News - UK: Treasury to Release Draft Law on Sukuk Taxes

Source: Middle East Insurance Review | Mar 2007

The UK Treasury is presenting a draft law to improve the tax treatment of Islamic finance, including sukuk and takaful, in the UK for the next financial year. The government aims to create a positive environment for the Islamic financial sector to grow and develop in the UK, and to promote London as a global centre for Islamic finance and trade.

The new legislation or rules will promote the launch of Islamic bonds, and ensure that diminishing musharaka – which are Shariah-compliant loans that are repaid in instalments – and takaful are taxed in the same way as conventional products.

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