The Islamic inheritance

JON GOLDING investigates the impact of Islamic law and the forced heirship principle on United Kingdom inheritance tax liabilities.

THE VAGARIES OF the British transport system mean that you arrive at work late again and find that a note of a telephone conversation is lying on your desk. It says that your Muslim client Mr Naiwaz (see ' An Islamic alternative ' Taxation 6 October 2005 page 10) would like you to telephone his brother Abdullah who is living in Malaysia to discuss certain Islamic inheritance issues relevant to his investment in your client's carpet importing business and the idea of setting up a trust to hold the assets of his business.

You recall that Mr Naiwaz did not eventually enter into an agreement with an offshore bank for funding but received a loan from Abdullah who was to be...