| The Association of Chartered Certified Accountants (ACCA) has welcomed the Treasury's latest plans to remove tax barriers to some Islamic finance products. Under the measures laid out by chancellor Alistair Darling in last week's Budget, alternative finance property investment bunds, such as those favoured by Islamic financiers, will receive relief from stamp duty land tax (SDLT). In addition, investments may also be given relief on capital gains taxation, with some Islamic debt products having previously been taxed twice as a result of the process of money generated by underlying assets not being returned as interest payments. Welcoming the Budget measures, which come into effect at the start of the third quarter of 2009, Chas Roy-Chowdhury, head of taxation at ACCA, said: "These measures could be more significant in the current economic climate, where access to finance has dried up so strikingly. "Such positive steps will boost the Islamic finance sector and hopefully facilitate another alternative source of finance for businesses in the UK." Earlier this month, the ACCA warned the government against increasing taxes, arguing that it could prompt some businesses to rein in their spending. Link: http://www.globalislamicfinancemagazine.com/articles.php?id=923 |
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