Taxation (International and Other Provisions) Act 2010 section 366

Power to amend the alternative finance provisions

Section 366 gives the Treasury the power to amend tax legislation dealing with alternative finance arrangements, such as Sharia-compliant finance products, by statutory order.

• The Treasury can amend existing alternative finance tax provisions or introduce new ones by order
• Alternative finance arrangements are those that replicate the economic effect of interest-bearing transactions (such as loans or deposits) but without actually involving interest payments
• Orders can make general or targeted changes, apply differently to different situations, and include consequential amendments to other tax legislation
• Orders that introduce entirely new types of alternative finance arrangement, or that amend primary legislation outside the alternative finance provisions, require prior approval by the House of Commons

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