Taxation of Chargeable Gains Act 1992 section 151S

Other arrangements

Section 151S defines what counts as "alternative finance return" for three specific types of Sharia-compliant financial arrangements: deposit arrangements, profit share agency arrangements, and investment bond arrangements.

• For deposit arrangements, the alternative finance return is the amount paid or credited to the depositor by the financial institution out of profits generated from the use of the deposited money.
• For profit share agency arrangements, the alternative finance return is the amount paid or credited by the financial institution to the principal, representing their entitlement to profits earned under the arrangement.
• For investment bond arrangements, the alternative finance return consists of the "additional payments" made under the arrangement, as defined in section 151N.
• In all three cases, the amounts identified as alternative finance return receive special tax treatment under this Chapter, ensuring these Sharia-compliant products are taxed consistently with their conventional finance equivalents.