Is it permissible to give Zakāt al Maal to a charity if it operates abroad?

Q: Is it permissible to give zakāt al maal to a charity even if it operates in other countries?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: All things being equal one should distribute one’s zakat in the immediate locality of the zakātable wealth.  Failure to do so is reprehensible but not prohibited.  However, if […]

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Do I have to pay zakah on Qard Hasana given to an individual?

Q: If an individual lends £2,000 to his relative on the basis of qarḍ ḥasana (gratuitous loan) and the £2,000 is still outstanding. How should the lender treat the outstanding £2,000 for the purposes of zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: A personal loan is categorized as a ‘strong debt’.[1] […]

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What is the distinguishing difference between a trust and waqf?

Q: What is the distinguishing difference between a trust and waqf? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The fundamental difference between the forms of trusts discussed in the document on trusts and a valid waqf is that in the latter property is taken out of one’s ownership and passed in to the ownership […]

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Do I still have to pay zakah on my frozen pension fund?

Q: Do I still have to pay zakāh on my frozen pension fund? I have a pension which is now frozen where I have selected the funds. The pension is invested in shares. Both myself and my employer had contributed to the pension. The pension has made a profit. Can you please confirm the following: […]

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Do I have to pay zakah on shares held for me by a nominee?

Q: Do I have to pay zakāh on shares held for me by a nominee on trust? For e.g. I purchase shares in my own name via TD Waterhouse who hold legal title on a nominee basis. This means they are shown on the company register as the legal owners of the shares. However they […]

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Is zakah payable on the value of on account payments for a person who has an Islamic Home Purchase Plans?

Q: Is zakāh payable on the value of on account payments for a person who has an Islamic Home Purchase Plans? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Ownership of the on account payments, both under the Ijarah home purchase plan and the Diminishing Musharakah home purchase plan, remains vested in the […]

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Is zakat payable on rental income as well as on the share of property that is owned?

Q: 1 Can you please confirm that zakat is payable on rental income as well as the share of property that is owned. For example, if the annual rental income is £15,000 and the annual mortgage payment is £12,000, is zakat due on the difference (£3000 in this example) if the person hasn’t spent any money from rental […]

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If I own land in a foreign country on which a house is currently being built which will be rented out, is there any Zakat to be paid currently?

Q: If I own land in a foreign country on which a house is currently being built which will be rented out, is there any Zakat to be paid currently? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: There is no Zakat payable on the land.

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Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation?

Q: What is the time-period for dispensing Zakat? Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakat should be distributed as soon as possible.  If there are procedural delays in the PROPER discharge of zakat which includes proprietary […]

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For zakat purposes, how might we interpret ‘fi sabeelillah’ in the modern context?

Q: How might we interpret fi sabeelillah in the modern context? Could this include campaigning or advocacy activities – for example, raising awareness about Islamic teachings on poverty issues, dispelling misperceptions about Islam, speaking out on international justice issues etc. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Whilst the literal meaning of fi sabilillah […]

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How can I subtract oustanding debts from my zakatable assets when the exact amount is unknown?

Q: I would like to find out what I should do in a situation where in I owe money to a few organisations but I don’t know how much as I owe this money was due years ago, do I take a rough calculation and subtract it from the nisab? الجواب حامدا ومصليا ومسلما ومنه […]

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Is the debtor considered poor, and thus eligible to Zakāt funds?

Q: Is the debtor considered poor, and thus eligible to Zakāt funds?    الجواب حامدا ومصليا ومنه الصدق والصواب   A: If the individual’s non-essential items do not cover the qualifying debts or do not reach the nisāb after covering qualifying debts then that person is considered poor and is eligible to receive zakāt.  It […]

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