Sharia Banking Experience

DullGreyGuy

lr1277 said:

Sorry slightly off topic. So I am asking out of curiosity.

Yesterday for the 1st time I looked at an Islamic/Sharia savings account. I noticed they make quite clear they don't pay interest but pay profit instead.

Does this affect how you fill in your self-assessment tax return? Is the money from this style of account classed as interest, dividend or something else?

And however it is declared, does this affect the relevant personal allowances for tax purposes?

Interest... its a fudge to get around their religious rules on interest and gambling etc. There is also takaful insurance which is really no different to a mutual insurer but because how its all worded it ceases to be gambling allegedly. 

In theory a takaful insurer can only buy reinsurance from a takaful insurer too but having done a deal with a Saudi based insurer they were comfortable with us "leaving it to them" to sort out the fact we werent takaful.