Lord Sheikh, Stephen Timms MP and Baroness Uddin represented the APPGIF at a meeting with Economic Secretary to the Treasury John Glen MP on Thursday 17th January 2019. The APPGIF was particularly grateful to the Minister for fulfilling the meeting during a particularly challenging time for the Government.
The meeting provided an opportunity to update the Minister on the APPGIF and, in particular, discuss some of the key issues that have been raised by stakeholders over the last year. Topics covered during the productive meeting included:
- Introduction to APPGIF
- Sovereign Sukuk Re-Issuance
- Shariah Compliant Student Finance
- Shariah Compliant Start-up Loans
- British Business Bank Shariah Compliant Products
- Capital Gains Tax and Consumer Credit Act Issues
- Women in (Islamic) Finance
The Minister reiterated the Government’s commitment to Islamic finance and welcomed the important role the APPGIF is playing in providing a voice to the sector in parliament.
In terms of next steps Mr Glen requested that the APPGIF and its stakeholders revert by providing:
- Further information on the demand for Shariah compliant funding that is not being currently served by the British Business Bank
- Evidence demonstrating the extent to which Islamic refinancing and buy-to-let home finance transactions incur additional tax costs due to an inbuilt capital gain
- Clear and specific representation as to the implications of the Consumer Credit Act containing interest-based clauses in their terms and conditions and how this can be addressed.
The APPGIF will be engaging with members to explore these issues in more detail before submitting a formal response to the Minister.