First UK Islamic ISA gives consumers ethical tax-free way to save

The Islamic Bank of Britain (IBB) has announced the launch of the UK’s first Islamic ISA. The account offers UK consumers an alternative and tax-free way to save. ISAs allow consumers to hold cash, shares and unit trusts free of tax on dividends, interest and capital gains. The UK Islamic finance sector is expected to see rapid growth this year and be worth $2 trillion (£1.2 trillion) by the end of 2014. The popularity of Islamic investment is growing outside of the Muslim community. The IBB estimates that over the last year, around 87% of applications for fixed term deposit accounts were from non-Muslim customers.