"The first Sharia-compliant pension fund has been launched in the UK.Importantly, savers will be able to enjoy tax relief on their pension contributions."
The fund which does not invest in companies that trade in guns, alcohol, gambling, tobacco or pornography, nor does it receive interest, has been launched by Pointon York and the Islamic Bank of Britain (IBB).
Investors will be able to save in a self-invest personal pension and choose from a range of Sharia-compliant assets. These could include cash, funds and property.
This means that with sharia, you don't get interest per se. You pay a regular amount into the fund or account and at the end of the period you own the property, cash or funds: outright.
But instead of interest, the "savers" will get the money back as tax relief.
Tax relief is sharia compliant, interest is not. Is this just a matter of words? Hmm.
Read the full article here:
Sharia-compliant pension fund launched - Pensions, Money - The Independent: