Do I pay zakah on an investment from which I get no return, but whose value rises?

Q: Do I pay zakāh on an investment from which I get no return, but whose value rises? I had about £51,300 on which I paid zakāh this year which left me with about £50,000. I then invested that £50,000 into a company. So now I own 5% percentage of that company. I am not […]

Read more...

Is the Legal and General Ethical Pension Fund Permissible?

Question: Is the Legal & General Ethical Pension Fund Permissible? https://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/Documents.aspx?type=custom_field.www_landg_co_uk.factsheet_SHIFA&user=flweb&id=62fc2302-3833-4cfb-bafb-e8eff5176882&track1=68896048-52f1-40eb-a86c-3e1d119e18a3&track2=LegalAndGeneralAdviser Answer: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The LEGAL & GENERAL PENSION ETHICAL FUND in question invests nearly 30% in the interest based financial sector and thus it cannot be considered to comply with Islamic law. And Allah knows best, Mufti Mohammed Zubair […]

Read more...

How can potential Zakat recipients be determined?

Question: When determining who is eligible for Zakat ,what information and verification is required?            Are any of the following acceptable methods of selecting Zakat recipients? Only ask the beneficiary, if they are eligible for Zakat? Ask the beneficiary for amount of savings, debts, income and expenditure to then calculate a rough eligility based on Nisab? Does […]

Read more...

Is it permissible to take out critical health insurance?

Question: Is it permissible to take out critical health insurance? Answer: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب Conventional insurance is a commutative contract that involves gross uncertainty, contingent return, meysir and riba. Thus, conventional insurance is not permissible and is tolerated only where it is a legal requirement or a real necessity. Critical illness insurance […]

Read more...

Is it permissible to use interest free finance to purchase a car?

Q. Please can you explain if it’s permissible to use interest free finance to purchase a car. Some showrooms let you hire-purchase cars where it’s interest free, with no deposit. There is a scheme for certain company employees that allow the following deal: 8% off rrp and 0% interest. This seems to be a popular […]

Read more...

Is it permissible to use Zakat to fund qard hasan, microfinance initiatives or invest into waqf projects?

Q: Is it permissible to use Zakat to fund qard hasan, microfinance initiatives or invest into waqf projects? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: It is not permissible to use zakat to fund qard hasan, microfinance initiatives or invest into waqf projects as none of these avenues satisfy the requirement of proprietary transfer […]

Read more...