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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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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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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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 […]

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What is the Shari’ah position with regards to zakah on Diminishing Musharaka home purchase plans?

Q: What is the Shari’ah position with regards to zakāh on Diminishing Musharaka home purchase plans? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Under the Diminishing Musharakah home purchase plan, the client again incurs a debt only to the extent of the outstanding monthly rental payments subsequent to his use of the […]

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Please explain which descendants of the Holy Prophet Muhammad are not allowed to receive zakah?

Q: Please explain which descendants of the Holy Prophet Muhammad (s)are not allowed to receive zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: It is actually not the descendants of the Holy Prophet Muhammad (s)that are prohibited from receiving Zakat but rather certain descendents of Banu Hashim of whom the Holy Prophet […]

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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 […]

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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 […]

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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: […]

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Is the responsibility of Zakāt a strictly individual responsibility or can it be joint say in the case of husbands and wives?

  Q: Is the responsibility of Zakāt a strictly individual responsibility or can it be joint say in the case of husbands and wives? Most spouses would have joint finances and liabilities or would treat theirs as such. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakāt is strictly a personal obligation.  Even in jointly […]

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