DAR AL HARB - U.K.: EASIER MORTGAGES FOR 2 MILLION MOSLEMS IN THE U.K.

Property: Islamic mortgages just got easier

A key move in last month’s Budget will greatly assist lenders in complying with Sharia law and this summer will see the launch of an online initiative providing access to every Islamic UK lender. With more than two million Muslims in Britain, intermediaries have a growing opportunity before them.

One of the little-noticed changes in the Budget, for which Gordon Brown should be given full credit, is simplification of rules governing Islamic bonds which will make it easier for Islamic mortgage lenders to securitise their home loans. ‘This is definitely part of Gordon Brown’s agenda to make London the centre of Islamic finance,’ says Peter Muir, tax partner at accountant Deloitte.

‘We are the only jurisdiction in the world which is writing this legislation and the new provisions deal with Islamic bonds. It is generic and covers the whole range of Islamic bonds, both wholesale and retail. Reform of Sukuk (Islamic bonds) gives certainty to the taxation of Islamic financial products. Before this reform was introduced, there was ambiguity around how capital gains tax, income tax and capital allowances would apply to these products,’ Muir says.

...



Pertinent Links:

1) Property: Islamic mortgages just got easier