Aug 23 2007
The Tax Incentivised Savings Association (Tisa) has welcomed the extension of shari'a-compliant financial instruments (sukuk) to incorporate child trust funds (CTFs).
Legislation introduced as part of the Finance Act 2007 means that CTFs schemes can now be used by Muslim parents as a way to save for their children's financial future.
Muslims in the UK are also now in a position to invest in individual savings accounts (Isas) in a way that does not conflict with their religious beliefs, Tisa explains.
Tony Vine-Lott, Tisa director general, said: "We are very pleased with the action that HM Treasury has taken on sukuk instruments as this further reinforces the UK's position as one of the leading centres for Islamic finance in the world.
"We are extremely pleased that the government has given us clarification that these assets will be allowed in government savings schemes."
Mr Vine-Lott suggested last month that parents are becoming increasingly involved in schemes designed to give their children a solid financial start to their adult life.
