An Islamic alternative

JON GOLDING explains the Finance Act 2005 provisions that deal with the taxation of 'alternative finance arrangements'.

THE ISLAMIC LAW Shari'ah encompasses religious duties and in this law the legal side of matters is only part of the religious and ethical conduct of life. In applying the Qur'anic legislation Islamic scholars have had to deal with the increasing ties with western business which may condone activities that are prohibited ('haram') by Islam such as gaining wealth by interest bribery or gambling.

The reasoning for this is that a society should flourish by co-operation and mutual help not by the exploiting of some people by others — for instance in the non-productive charging of interest or 'riba'. Western financial values are not based on the same principles and the fact that there are nearly two million Muslims resident in the UK makes Shari'ah compliant...