Contributing to your CPD?
If this article is supporting your professional development, it can count towards your verifiable CPD hours. Use the pop up at the bottom right corner of your screen to add reading this article as an activity to your online CPD record.
Alternative finance, such as, Islamic finance, involves selling, purchasing or renting assets in such a way that no interest is paid or received. The rules for alternative finance intend to give the same tax outcome as for conventional finance. The government is consulting on changes to the rules to ensure this is the case.
The government believes that some arrangement types could have unintended CGT consequences. The government’s solution is to treat a qualifying refinancing arrangement as exempt from CGT. The legislation will set out the conditions that must be met for this treatment to apply. It will also include provisions to prevent abuse of the relief. Similar changes will be made for capital allowances purposes if needed.
The consultation is open until 9 April 2024. If you have comments on the proposals that could contribute to a response from ICAEW, please contact Lindsey Wicks.
The Tax Faculty
ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More support on tax
ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.
Sign up for TAXwireJoin the Tax Faculty