Her Majesty’s Revenue and Customs (HMRC) has this week made a welcome announcement as part of their ‘Building a trusted, modern tax administration system’, a principle first heralded by
the government in July 2020. HMRC’s vision is to design a trusted, modern tax system that is simpler, easier to navigate, helps avoid non-compliance and is ‘fit for the modern world’. See the
contextual detail [here](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1037134/Command_Paper_TAMD_FINAL.pdf). 

The publication by HMRC with a foreword by the Rt Hon Lucy Frazer QC MP, Financial Secretary to the Treasury, specifically singles out Islamic Finance as a home financing alternative that the
government now intends to include in their rules as a means of ‘levelling-up’ the tax regime by way of ensuring that Islamic finance compliant peer-to-peer platforms and their financing is
treated in the same way as traditional home financing and loans for taxation purposes.

This success has been brought about due to the efforts of [Nester](https://www.nester.com/), the soon to launch Islamic Finance compliant peer-to-peer platform, in lobbying to seek a level playing field versus
traditional bank real estate lending.

The HMRC [memorandum ](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1037134/Command_Paper_TAMD_FINAL.pdf)published today states:
*3.16 Helping to level the playing field for alternative finance arrangements – The government is widening the scope of the alternative finance rules to allow FCA-regulated Home Purchase Plan providers and alternative finance arrangements through FCA-regulated peer-to-peer platforms to access the rules. This will allow these products to be treated in the same way as conventional mortgages and loans for tax purposes, contributing towards a level playing field for Islamic and conventional finance products. Changes will be made through secondary legislation in 2022. Arrangements entered into between the publication of this paper and the effective date of the secondary legislation will be eligible, but only in relation to events occurring after the effective date.*

Nester is the first and the only Islamic Finance compliant peer-to-peer Fintech platform directly authorised by the FCA.

Youness Abidou, CEO and Co-Founder of Nester says “As real estate financing and investment evolves to embrace alternatives other than just traditional bank products, Nester set out to persuade HMRC that our provision, an Islamic compliant solution powered by technology, should surely not be excluded from the taxation benefits that conventional providers and their customers receive. After a successful effort by our team and our advisors I am pleased that our products are now to be assessed on the same basis as its conventional counterparts’.

‘As an FCA regulated business we can now add ‘HMRC compliant’ to our list of accreditations’. ‘Embracing product expansion and alternative funding methods is of course hugely beneficial to
the customer because more choice means a greater competitive dynamic and, ultimately, better customer value”.

Mohammed Paracha, Co-Founder of Nester and former member of the Bank of England Committee on Islamic Finance says “In 2002 we made sweeping changes to the legal and regulatory system of the United Kingdom to level the playing field for Islamic Finance. This paved the way for London to host a number of new banks and Islamic products and become known as a global hub for the industry. London is now a multi-billion-dollar home for Islamic Finance related transactions’.

‘The changes announced by HMRC this week fixes a roadblock that was inadvertently created when the rules for FinTechs were first introduced. The dots had not been connected back to the earlier rules and this meant that new FCA regulated Islamic peer to peer FinTechs, such as Nester, were at a disadvantage and limited in product offerings in order to avoid the same double stamp duty issues that existed pre-2002. The playing field has now been levelled”.

Ed Peters, BDO Tax Partner at the leading accountancy and professional services firm, advisors to Nester adds “BDO is delighted to have been able to support Nester in their representations to
HMRC to level the tax playing field for Islamic peer-to-peer lending platforms. It is great news that HMRC have been so supportive of the Islamic finance industry and their desire to support improvements in the tax rules in the industry are a positive development for the industry in the UK. As a firm, we are passionate about helping clients by tapping into our wide-ranging expertise and look forward to advising further Islamic lenders and investors”.

Nester has raised significant funds from leading investors from the world of Islamic Finance and is set to launch its real estate investment and financing products via its Fintech platform very
soon.

The Nester.com platform is now live [here](https://www.nester.com/).

Your questions answered [here](https://nester.com/faqs).

Founder video [here](https://youtu.be/LOb9jYGkJTM).

Ends
Media Contact
Russell Quirk
Director
ProperPR
T: 07930 336544
E: russell@ProperPR.co.uk
James Lockett
Director
ProperPR
T: 07584 248960
E: james@ProperPR.co.uk
Notes to Editors
● Launched in 2021, Nester is an Islamic Finance compliant property-backed, adapted peer to peer framework platform for investors and borrowers.
● Nester’s CEO is Youness Abidou, a veteran of banking, accountancy and Islamic Finance
● Nester is backed by some of the best known and most respected senior financers and Islamic Finance specialists in the world 
● Borrowers seeking property bridging loans, development and refurbishment finance can apply directly via the platform. Investors provide funds via the platform to Nester, secured against property assets.
● Nester invests in secure real estate assets, concentrated on high-quality commercial and residential sectors with a focus on the UK market.
● Nester’s vision embraces a new, highly competitive approach that aims to serve the entire community and led by ethics, transparency and compliant principles.
● Nester is regulated by the Financial Conduct Authority in the UK.

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Her Majesty’s Revenue and Customs (HMRC) has this week made a welcome announcement as part of their ‘Building a trusted, modern tax administration system’, a principle first heralded by the government in July 2020. HMRC’s vision is to design a trusted, modern tax system that is simpler, easier to navigate, helps avoid non-compliance and is ‘fit for the modern world’. 

Fintech Platform Nester Delighted by Government Decision To Change Rules To Promote Peer-to-Peer Islamic Finance Alternatives

National law firm, Foot Anstey LLP, which has offices located in Bristol, Exeter, London, Plymouth, Southampton, Taunton and Truro, has advised London-based fintech start-up Nester Holdings Ltd on, what is believed to be, the first UK Peer2Peer Islamic Finance fintech deal worth £431,000, followed recently by a second deal worth £225,000. 

Imam Qazi, Partner, and Leena Payyappilly, Associate, in Foot Anstey's Islamic Finance team advised on all legal aspects of the deal. This included drafting the Murabaha* and legal security contracts, as well as acting on behalf of Nester's stakeholders throughout the deal to completion to ensure a smooth transaction.

Since its inception in 2018, Nester's mission has been to supply financial products that are available to all through transparent communication, which ensures risk and reward are explained in a way everyone understands. It not only supports investments but also enables individuals to act as lenders to investors and earn a return on secured investments. Nester has strived to equip property developers, and those who wish to invest in property, with the empowerment, knowledge and clarity needed to make solid investments.

Youness Abidou, Founder and CEO at Nester commented on the completion of the deal: "Imam and Leena at Foot Anstey have been integral to helping us take Nester from conception to launch, and now to continuing to deliver solutions with inclusivity as a shared core value."

Imam Qazi, Partner at Foot Anstey said: "Nester is a pioneer in its field and what Youness Abidou and Mohammed Paracha are doing is unique. It was our pleasure to support the first fintech Islamic Finance Peer2Peer deal in the UK. This type of deal signifies a growing appetite in the UK market for Islamic Finance."  

To find out more about Foot Anstey's services please visit https://www.footanstey.com/about/ or get in touch with the firm here https://www.footanstey.com/contact/. 

-ENDS-

Editors contacts

James Grice – james.grice@footanstey.com or +44 117 9154982         

Matt Samuel – matt.samuel@footanstey.com or +44 117 9154998  

Notes to editors

About Foot Anstey
Foot Anstey is one of the UK's fastest growing law firms. Over our history we've grown from a high-street firm to a significant regional and national player working with leading brands and individuals predominantly across six key sectors: Developers, Energy & Infrastructure, Islamic Finance, Private Equity, Private Wealth, Retail & Consumer. We operate from seven bases: Bristol, Exeter, London, Plymouth, Southampton, Taunton and Truro.

We care about contributing to the communities where we live and work and the Foot Anstey Foundation provides grants to local grassroots organisations. 

Murabaha meaning

*Murabaha is a common method of finance in Islamic banking and is a deferred sale of goods at cost plus an agreed profit mark up under which the seller purchases goods at cost price from a supplier and sells the goods to the buyer at cost price plus an agreed mark-up.

Foot Anstey. Powering Your Ambition
www.footanstey.com


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National law firm, Foot Anstey LLP, which has offices located in Bristol, Exeter, London, Plymouth, Southampton, Taunton and Truro, has advised London-based fintech start-up Nester Holdings Ltd on, what is believed to be, the first UK Peer2Peer Islamic Finance fintech deal worth £431,000, followed recently by a second deal worth £225,000. 

Foot Anstey advise on first Peer2Peer Islamic Finance fintech deal in the UK

**Leading International Financiers Invest in New Challenger Fintech Platform To Benefit Investors and Buyers**

The Launch of the UK’s first Islamic finance compliant, peer-to-peer investment platform is set to provide fresh investment and real estate financing opportunities to communities, who have historically had a lack of financial products available. Nester aims to do this in a transparent, competitive, and timely manner.

Nester has two core offerings, an investment product aiming to deliver favourable returns to investors and a real estate financing solution for property buyers seeking finance for development projects, commercial buy-to-lets and bridging at competitive rates.

The traditional banking model of fractional reserve banking has not materially changed for some 150 years. Challenger banks have entered the market to start to introduce technology, improving the experience of customers with transparency and speed, but innovation is still needed and Nester aims to push this further in an inclusive manner for all communities. Investors and savers have historically resorted to depositing funds with a bank as the simple option of earning a return on their investment, albeit earning very little.  

Nester believes empowering its community of customers with knowledge of its investment products will allow investors to consider its fixed income investments secured on real estate in the UK, as a viable alternative to improve returns on customers savings. For some, this is the only option available where investment products don’t exist and these communities, that have been financially excluded, will benefit from the Nester solution. 
	
The Nester solution facilitates real estate financing and investment in a transparent, ethical and fair manner. Moreover, the shift towards a more technologically literate population and a broader offering from new tech startups has seen peer to peer and other break out sectors offer new opportunities to investors. Nester adds to this with a product that is available for all.

**Who is Nester?**
[Nester ](https://www.nester.com/) introduces an innovative, ethical and digital alternative to legacy banking. The new technology empowered platform provides competitive and simple financing for buyers, whilst providing an opportunity for investors that wish to support individual development or investment projects. Investors will have the opportunity to have significant reliable returns, secured by a first charge on the property asset itself. 

Nester has completed a significant pre-series A equity raise from multiple highly regarded investors to support an innovative invest/finance approach via a bespoke software platform developed by the Nester team over the past three years. 

Founded on a culture of ethics, trust and transparency, Nester is the democratisation of real estate financing benefiting all property investors seeking finance, not just the ultra-wealthy. The Islamic finance compliant peer-to-peer platform allows buyers direct access to bridging, refurbishment and property development financing options. 

**How do they work?**
Investors provide capital investment to buyers by investing in the financings directly, while their investment is secured on the underlying property asset(s). The transactions are sourced by Nester who in turn carefully screen and underwrite each deal themselves before offering the opportunity to investors. Nester is authorised and regulated by the Financial Conduct Authority (FCA) and ensures complete transparency and adherence to comprehensive risk mitigation to protect its customers. 

Nester has approved over £4million worth of financings which will be soon be available to our Investors on the Nester platform. There are a number of additional transactions in the pipeline across the UK which are set to generate returns in excess of 6.0% per annum. 

**Who is behind Nester?**
Heading up the Nester business day to day is Co-Founder and CEO:
**Youness Abidou** – An accountant by qualification and formerly Senior Relationship Manager at Bank ABC, VP of Real Estate Structured Finance at Gatehouse Bank PLC and Islamic Finance specialist.

‘Nester takes a rather different approach and aims to provide favourable investor returns on a monthly basis whilst also facilitating access to financing for SME buyers, all in relation to customers that were previously excluded from financial products. It’s a simple, efficient platform led process using our own credit risk scoring algorithm led technology, with rigorous due diligence carried out by experts and all secured on the property assets themselves’.

‘We have assembled a star-chamber of talent and investment to support the Nester business who all hail from the very top levels of global finance - indicative of the strength of our product and of our team. I’m humbled to be part of such a collective of like-minded, highly respected professionals as we strive to challenge and democratise real estate financing and the Islamic Finance industry.”

And the notable individuals supporting the Nester business:

**Mohammed Paracha** - Co-Founder
Senior lawyer and Islamic Finance specialist at Norton Rose Fulbright where he is Head of the Middle East. Formerly a member of the Bank of England Committee on Islamic Finance, Lead at Dubai Islamic Economy Development Centre and CEO and Head of Europe at Al Salam Europe Ltd, European arm of Al Salam Bank in Bahrain.
 
“One of the reasons I have co-founded Nester with Youness is to reset our ‘default’ thinking when it comes to our day to day investment needs. We are pre-programmed from a young age to use banks in a certain way, including for all our investments.’ 

‘A core driver for me is to address financial inclusion which is also at the heart of Islamic finance, advocating for a fairer way to distribute wealth compared to the traditional fractional reserve banking model that is still used by banks.  Nester gives a real alternative for both buyers and investors and we hope that our journey together will be enlightening.”     

**Iqbal Khan** –Investor through his Family Office; Baraka Khan Family Office.
Founding Chief Executive of HSBC Amanah & Fajr Capital; Board Member at Jadwa Investments Saudi Arabia; and the MENA Infrastructure Fund.

“I have had the privilege to contribute to the success of the Islamic Finance industry in numerous countries and this, my investment in Nester, is exciting in that it is the first such Fintech platform that ensures an ethically compliant structure that offers innovative financing and investment solution to a sector that has long needed innovation,” says Iqbal Khan.



**Tariq Usmani MBE** – Key Investor 
CEO and Co-Founder of Henley Homes, the residential developer. Chair of the West London Islamic Centre and Mosaic’s Ex-Offender Programme.

“This is the beginning of the democratisation of real estate investment, whether one is acquiring real estate and needs financing or interested in earning a fixed return with real estate as security.  Nester is innovative and focused on inclusion for all. With this ethos at the heart of its offering I am delighted to be a Director and Key Investor in this business” says Tariq Usmani MBE, a Key Investor  

The Nester.com platform is now live here.
Your questions answered here.
Founder video here. 
Pics attached

**Ends.**
**Media Contact**
Russell Quirk
Director
ProperPR
T: 07930 336544
E: russell@ProperPR.co.uk

James Lockett
Director
ProperPR
T: 07584 248960
E: james@ProperPR.co.uk


**Notes to Editors**
●	Launched in 2021, Nester is an Islamic Finance compliant property-backed, adapted peer to peer framework platform for investors and buyers. 
●	Nester’s CEO is Youness Abidou, a veteran of banking, accountancy and Islamic Finance
●	Nester is backed by some of the best known and most respected senior financers and Islamic Finance specialists in the world
●	Buyers seeking property bridging, development and refurbishment finance can apply directly via the platform. Investors provide funds via the platform to Nester, secured against property assets. 
●	Nester invests in secure real estate assets, concentrated on high-quality commercial and residential sectors with a focus on the UK market. 
●	Nester’s vision embraces a new, highly competitive approach that aims to serve the entire community and led by ethics, transparency and compliant principles. 
●	Nester is regulated by the Financial Conduct Authority in the UK.   



thumbnail_Nester Logo

Nester Logo

The Launch of the UK’s first Islamic finance compliant, peer-to-peer investment platform is set to provide fresh investment and real estate financing opportunities to communities, who have historically had a lack of financial products available. Nester aims to do this in a transparent, competitive, and timely manner.

Blog & News

Fintech Platform Nester Delighted by Government Decision To Change Rules To Promote Peer-to-Peer Islamic Finance Alternatives

by Youness ABidou

Foot Anstey advise on first Peer2Peer Islamic Finance fintech deal in the UK

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Real Estate Financing Needs Innovation - Nester has Launched!

by Youness ABidou