Q: Is it permissible to purchase stocks using call and put options? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Call and put options are essentially the sale of a right which one party gives to another in return for a fee. The option holder purchases the option to hedge against possible negative […]
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Can someone stuck in a ribā-based loan give voluntary charity, or do they need to pay off the ribā-based loan first?
Q: Can someone stuck in a riba-based loan give voluntary charity, or do they need to pay off the riba-based loan first, given that is a duty, and thereafter resume with giving voluntary charitable donations? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: One who has taken a haram loan or a conventional mortgage should […]
Read more...Is it permissible to use a non-islamic business account that does not accrue interest?
Q: Is it permissible to use a non-islamic business account that does not accrue interest for a ltd company? الجواب حامدا ومصليا ومنه الصدق والصواب A: It is permitted to use an account of a conventional interest-based bank that does not bear interest for a limited company. Any deposits in the account are essentially a […]
Read more...What is the Islamic position on ‘Spread Betting’?
Q: What is the Islamic position on ‘Spread Betting’? Please find below two definitions given for this activity. From http://www.investopedia.com/terms/s/spreadbetting.asp Definition of ‘Spread Betting’ A type of speculation that involves taking a bet on the price movement of a security. A spread betting company quotes two prices, the bid and offer price (also called the spread), […]
Read more...How should ownership of a house be divided if both spouses contribute towards regular payments and also the initial deposit?
Q: How should ownership of a house be divided if both spouses contribute towards regular payments and also the initial deposit? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The ownership of your brother’s house depends on the understanding at the time of purchase between your brother and his wife. If the understanding was that the […]
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...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...Please could you clarify the Islamic permissibility for one to claim income support?
Q:Please could you clarify the Islamic permissibility for one to claim income support? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The permissibility of being able to claim income support depends on whether the individual fits the eligibility criteria or not. The eligibility criteria can be seen at the following link: https://www.gov.uk/income-support/eligibility If […]
Read more...Is my earning halāl if I’m a hypnotherapist?
Q: I am a practitioner in Neuro Linguistic Programming and Hypnotherapy, which I practise for the purposes of helping people overcome fears and/or phobias that were installed as a programme within people’s life experiences. Is my earning halal? الجواب حامدا ومصليا ومسلما ومنه االصدق والصواب A: Hypnosis as described in the question is […]
Read more...What is the Islamic stance on joint tenancy ownership of a property
Q: Are the joint tenancy laws of England (whereby one tenant inherits the other’s share directly on death) valid in Islamic law? What happens if I share a property with my mother- on her passing does her share come to me automatically or do my siblings then gain a share islamically? الجواب حامدا ومصليا ومسلما […]
Read more...Can rules of Ribā/usury relate to exchanging modern day goods such as mobile phones?
Q: Does ribā only relate to money and food items, or can modern day goods come under this too? Eg swapping a contemporary item -such as a mobile phone of a lower value for one of a higher value? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Ribā in trade relates to the sale […]
Read more...Is paying back more to a loan I take from my pension fund considered interest?
Q: I intend to purchase a property for my business use for which I intend to borrow the money from my own pension funds. I have a self-administered pension scheme to which I and my partners contribute, the scheme allows us to operate and invest the money at our own discretion as so far as […]
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