Marginal relief and Murabaha: Difference between pages

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''Tax - UK Corporation Tax - UK Capital Gains Tax''.  
''Islamic finance''.


Marginal relief is tax relief designed to bridge a boundary between (1) a full rate of tax - or charge to tax - and (2) lower rates, or tax free transactions.
Murabaha is a sharia-compliant financing arrangement under which a bank buys an asset and sells it on to the customer at an agreed mark-up.  The customer, who could not otherwise afford to buy the asset, pays in instalments.


Applying marginal relief has the effect of a lower overall effective rate of tax, or a lower tax charge.


Murabaha is sometimes known as 'cost plus financing'.


Examples of contexts where marginal tax relief have applied include UK Corporation Tax, and UK Capital Gains Tax.




== See also ==
== See also ==
* [[Marginal]]
* [[Islamic finance]]
* [[Marginal rate of tax relief]]
* [[Sukuk]]
* [[Tax relief]]
*[[Reverse murabaha]]
 
* [[Sharia-compliant fixed income capital markets instruments for cross-border transactions]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 12:12, 12 November 2015

Islamic finance.

Murabaha is a sharia-compliant financing arrangement under which a bank buys an asset and sells it on to the customer at an agreed mark-up. The customer, who could not otherwise afford to buy the asset, pays in instalments.


Murabaha is sometimes known as 'cost plus financing'.


See also