For detailed commentary on alternative finance arrangements, see ¶111-000. Since 6 April 2005, a regime has been in place in the UK to govern the direct tax consequences of certain financing arrangements which includes among others, certain Shari'a-compliant financing arrangements. The regime at FA 2005, Pt. 2, Ch. 5, as supplemented by subsequent Finance Acts, has now been rewritten to CTA 2009, Pt. 6, Ch. 6 for accounting periods beginning on or after 1 April 2009. In order to fall within the regime, the arrangements must be ‘alternative finance arrangements’ which comprise:

(1)purchase and resale arrangements (murabaha);

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