Is the US university pension scheme permissible?

Q: I would like to enquire whether it is permissible to join the USS pension scheme please? (https://www.uss.co.uk). It is offered by university employers. A: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The Universities Superannuation Pension Scheme is a Final Salary (defined benefit) pension scheme. The previous position of the Al-Qalam panel was that defined […]

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Is it permissible to take a business loan which requires payment of an insurance premium?

Hawkesbay Investment Corporation Limited The business is in conformity with standards and in line with normal  corporate ethics. Based on the loans agreement   drafted by our client and we guarantee that our client will only enter into a legitimate  business transaction as proposed with the funds. Legal & General Insurance  company  hereby  guarantee the safety […]

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Zakat on self invested personal pension

Q: How and when does a UK based SIPP ( Self invested personal pension ) begin to attract Zakat?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: A Self Invested Personal Pension (SIPP) is simply a tax efficient investment wrapper. The rules relating to zakat on investments will also apply to a SIPP. There are […]

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zakat on NHS pension contribution

Q: I am still working and not in receipt of any of he pension but continue to contribute towards the scheme on a monthly basis. Are you able to advise me whether zakat is payable on the NHS pension scheme in specific?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The NHS Pension Scheme, both pre […]

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Do I need to pay Zakat on my pension each year or when I start receiving it?

Q: Do I need to pay Zakat on my pension each year or when I start receiving it at the age of 55? The pension is two fold. 1) My employer contributes £300 per month towards my chosen pension provider. 2) My annual bonus, rather than paying 40% tax on it, is paid to my […]

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Is Zakat due on inheritance that is not received until a few years have passed?

Q: A man passes away leaving a wife and three children. The process of sorting out his estate takes 2-3 years in which time the family does not know exactly how much has been left behind and therefore they don’t know how much the are entitled to. Eventually the funds are received by the respective […]

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Who is liable to pay the Zakat for a limited company?

  Q: Is a limited company an independent entity in Islam and therefore liable for its own Zakat or does its value belong to the shareholders? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The liability to pay zakat falls on the shareholders and not the company itself. If taxes have been incurred on the zakat […]

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Is it prohibited to get a tax refund on Zakāt?

Q: It is prohibited to get a tax refund on zakat? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: The benefit prohibited to the payer of zakāt is that which comes directly from the zakat itself.  Incidental benefit from a third party, as in the case of a tax refund, is not prohibited.  

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How is Zakat paid on a ‘committee’ scheme between several individuals?

Q: How is Zakat paid on a ‘committee’ scheme between several individuals? I am currently calculating my Zakat for this year and wanted to know how we deal with a ‘committee’ which is a type of loan which is interest free, where there are a number of members and each member pays a certain amount and […]

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