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 getting any return from the company yet, but the value of the company is going up, therefore the value of my 5% will also go up.
Am I supposed to pay 2.5% based on the value of my 5% each year even though I won’t get to see that money until the 10 years are up?
الجواب حامدًا و مصليًا و منه الصدق و الصواب
A: Zakāh liability in the case in question depends upon the zakātable assets represented in your share of the company such as cash, receivables, stock, etc. Such assets are liable to 2.5% zakāh each year even if you can only withdraw your money at the end of ten years.