Q: I gifted my son £1,000 and hold this in an account in my son’s name. However prior to his 18th birthday he is not able to access that money without my consent. In this instance is he liable for zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: This would be considered […]
Read more...Category: Zakat Fatawa
Must defined pension schemes be included for Zakat calculations?
Q: I have a voluntary pension contribution at work. I am able to see the value of my pension pot and I am able to dictate where it is invested in, but as I am not at pensionable age I have no access to that money yet. I am Hanafi and from your research paper […]
Read more...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 […]
Read more...Is a HMRC tax deposit Zakatable?
Q: I have a question regarding the calculation of my zakat liability. My money has been deposited with HMRC to pay for outstanding tax liabilities. In theory I could still withdraw that money before 2019, but in this case interest would accrue and I would have to pay it all back in 2019 regardless. The […]
Read more...How can Zakat be calculated for shared savings and assets?
Q: Savings and a home are jointly owned equally by a married couple. The man is however responsible for payment of bills etc a. Can the Zakat be calculated collectively i.e. clump the debts together on one side and the joint assets such as bank savings on the other. b. How do you calculate payment […]
Read more...Is zakat payable on rental income as well as on the share of property that is owned?
Q: 1 Can you please confirm that zakat is payable on rental income as well as the share of property that is owned. For example, if the annual rental income is £15,000 and the annual mortgage payment is £12,000, is zakat due on the difference (£3000 in this example) if the person hasn’t spent any money from rental […]
Read more...Zakat on a fixed deposit account
Q: I have around 8000 pounds in a fixed deposit in an Islamic bank. My money is taken for 2 years and invested in halal things and then at the end of the two years my money is returned to me with profit InshaAllah also added to it. However I cannot access or withdraw any of […]
Read more...Zakat on stock sold on Ebay
Q: I was wondering how would I calculate my Zakaat on my business stock. I have a shop on eBay. When calculating the value of my assets: 1. Do I calculate the market value or the sale value. 2. Do I minus eBay and PayPal fees. 3. Do I minus vat. 4. Do I minus […]
Read more...Do I have to pay zakat on my saveshare’s contribution?
Q: I work for BT and I am part of their saveshare scheme. I put in £50 every month from my wage towards the saveshare. The money is held by BT for 3 or 5 years. I do not have access to this money during the 3 or 5 years. Do I have to pay zakat on […]
Read more...Is there zakat on the funds held by my sport club?
Q: A sport club earns their money through main sponsors (businesses), local individuals, membership fees, selling member kits, match day fees, selling sandwiches/tea/coffee etc. The club has expenses including league fees, league fines, league dinner, purchase of member kits and printing sponsor names, fuel, insurance, umpire fees, scorer fees, purchase of tea/coffee etc, match balls, […]
Read more...Can I deduct my working expenses from my zakatable amount?
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...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...