Q: Does the Al-Qalam Scholars Panel supervise or certify the zakat policies of National Zakat Foundation? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The Al-Qalam Scholars Panel (Al-Qalam) does not currently supervise or certify the zakat policies of National Zakat Foundation (NZF). The supervisory relationship between Al-Qalam and NZF existed from 2012 until 2016 […]
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Do students have to pay zakah on money from a student loan, if they have it in their possession?
Q: Do students have to pay zakāh on money from a student loan, if they have it in their possession? For e.g. a person took out tuition fee loan and maintenance loan (not grant) which roughly comes to about £6000. From that, £3000 is automatically taken by the university i.e. tuition fee which leaves a […]
Read more...Is the US university pension scheme permissible?
Q: I would like to enquire whether it is permissible to join the USS pension scheme please? (https://www.uss.co.uk). It is offered by university employers. A: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The Universities Superannuation Pension Scheme is a Final Salary (defined benefit) pension scheme. The previous position of the Al-Qalam panel was that defined […]
Read more...How did the Al Qalam panel decide the limit given to National Zakat Foundation caseworkers?
Q: How did the Al-Qalam Shariah Panel decide the limit (10%) that is given to caseworkers, who are involved with administering Zakat according to the National Zakat Foundation? A: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The limit of 10% is a not a shar’i limit. Rather, it is intended to ensure that zakat funds are […]
Read more...Do I have to pay zakah on money held for a minor?
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...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...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...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...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...Do I need to pay Zakat on my pension each year or when I start receiving it?
Q: Do I need to pay Zakat on my pension each year or when I start receiving it at the age of 55? The pension is two fold. 1) My employer contributes £300 per month towards my chosen pension provider. 2) My annual bonus, rather than paying 40% tax on it, is paid to my […]
Read more...Is zakat due on an amount of money I only came to possess 11 days before my zakat anniversary?
Q: Is zakat due on an amount of money I only came to possess 11 days before my zakat anniversary, and which is going to be used to buy a house (and therefore not “surplus” wealth)? الجواب حامدا ومصليا ومنه الصدق والصواب A: Once one becomes owner of the nisab one’s lunar year commences. Any […]
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