I work as a contractor which entails working away from home. My monthly costs for travel, hotel accommodation and food are in the region of £1000 per month. My client has recently extended my contract from the end of June 2016 to the end of December 2016. However, there is a standard 1 month notice […]
Read more...Category: Fatawa
Can I be a partner in a company that borrows interest based loans?
Q: I want to buy a business with a Muslim friend, and I want to avoid using an interest bearing loan from the bank. My friend has studied the issue of interest and holds the opinion it is permissible in this country. If the bank agrees to loan the money to my friend whilst I make a contribution towards […]
Read more...Gifting a land without registering the name of the giftee
Q: My father bought much land and properties overseas during his life. One particular piece of land was bought especially for my mother and he expressed this to her and there are witnesses to his statements. She accepted the gift but did not want her name showing on the property documents as she believed her husband’s […]
Read more...How does the proposed Shari’ah compliant student finance Takaful model work?
The proposed Takaful model is based on the principle of mutual co-operation and guarantee. Whilst a conventional loan contract requires the applicant to pay interest on the amount borrowed, the Takaful contract requires the applicant to make a unilateral promise to make future charitable donations in exchange for the Takaful fund paying for the applicants […]
Read more...What is the current status of the Shari’ah compliant student finance that was expected to be introduced by 2016?
The government indicated that it expected to implement an alternative (Shari’ah compliant) student finance scheme by 2016, following its consultation published in September 2014. The government has since revised its expectations for delivering any such scheme to 2018 at the earliest, details of this confirmation can be found in the recent white paper, entitled ‘Higher […]
Read more...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 […]
Read more...Is the new NHS pension scheme shariah compliant?
Q: The CARE (Career Average Revalued Earnings) is a type of defined benefit pension scheme. A defined benefit scheme guarantees a certain level of benefit at retirement, according to a fixed formula. In this respect it is similar to the current final salary sections of the NHS Pension Scheme. In a CARE scheme your pension is […]
Read more...Where should I keep my savings?
Q: I have some savings in a current account from a conventional bank that does not charge interest as far as I have been told, and just over £1000 saved in my saving account, that charges a minimum interest rate, that I do not have to hand now but I am told it is due to go […]
Read more...Are the earnings of a non practicing Muslim halal?
Q: I have a sister who works as a teacher for a school but she does not take hijab nor pray, but she stays in our house, is her earnings halaal? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The lawfulness of any earnings depends on the lawfulness of the role being performed. Failure to maintain […]
Read more...Can I pursue a career in the financial sector?
Q: For a long time now I have decided to study accountancy and other finance based subjects at university and go on to do a masters degree in Islamic Finance. My understanding is that Islam does not permit any use of interest and even those who deal with interest i.e. accountants, have sinned just by […]
Read more...Do we have to verify the source of income of an investor before going into partnership with them?
Q: We are planning to start a school in India. Our intention is to start with a conducive learning environment to our Muslim children without compromising our ethics and values, which is totally missing in non-muslim institutions. Though the school is based on a business model, all investors have agreed to pay back 40% of the […]
Read more...In the case of an insurance claim, can one include the value of the premiums paid for other cars?
Q: I understand that with car insurance claims, one should only recoup a sum equivalent to the total paid to a particular company to date, and any excess received beyond this sum be ‘repaid’ through future premiums to that same company. In both cases (historical payments and futures insurance cover), can one include the value […]
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