Q: What is the Islamic position on CFD Trading? I know Spread Betting is not allowed and is fundamentally different to CFD Trading as the former is a synthetic market that can be manipulated by the market makers. Additionally, with regards to ‘owning the stock’, an individual does not own the stock if bought via […]
Read more...Tag: fatawa
Is it haram to pay off interest I unknowingly accumulated?
Q: I have accumulated an interest based debt of which I had no previous knowledge. Is it haram for me to pay off this interest or am I allowed to pay it off in order to have a ‘clean slate’ so to speak. الجواب حامدا ومصليا ومنه الصدق والصواب A: You should first attempt to […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...Q: Is the responsibility of Zakat a strictly individual responsibility or can it be joint say in the case of husbands and wives?
Q: Is the responsibility of Zakat a strictly individual responsibility or can it be joint say in the case of husbands and wives? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakat is strictly a personal obligation. Even in jointly owned wealth the obligation of zakat remains personal. Thus, if a husband and […]
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...Why does one need to pay Zakat on a pension plan if one does not get access till later?
Q: I have recently setup a SI pension plan account where I can manage the investment but the principal and the gains are not available to me till the age of 55. Is the investment value still zakatable in the years leading up to age 55? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: […]
Read more...What does one do If they can’t find a trustworthy executor for their wills?
Q: What does one do If they can’t find a trustworthy executor for their wills? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: One should seek to employ the services of a competent solicitor who will undoubtedly be regulated by his/her professional body.
Read more...Are you allowed to give money to pay off someone’s debt while knowing that part of that is likely to go towards paying off interest?
Q: Are you allowed to give money to pay off someone’s debt while knowing that part of that is likely to go towards paying off of interest? The recipient of the financial help is a non-Muslim. الجواب حامدا ومصليا ومنه الصدق والصواب A: In principle, if you gift or lend someone some money that […]
Read more...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 […]
Read more...Is it permissible for an organisation that collects and distributes zakat to use zakat income to cover costs that are incurred directly as a result of the zakat distribution process?
Q: Is it permissible for an organisation or charity that collects and distributes zakat funds to use zakat income to cover costs that are incurred directly as a result of the zakat distribution process, e.g. salaries of caseworkers or fieldworkers, IT systems to manage data in relation to recipients of zakat, office space for zakat […]
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