What is the Islamic position on CFD Trading?

Q: What is the Islamic position on CFD Trading? I know Spread Betting is not allowed and is fundamentally different to CFD Trading as the former is a synthetic market that can be manipulated by the market makers. Additionally, with regards to ‘owning the stock’, an individual does not own the stock if bought via […]

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Is it haram to pay off interest I unknowingly accumulated?

Q: I have accumulated an interest based debt of which I had no previous knowledge. Is it haram for me to pay off this interest or am I allowed to pay it off in order to have a ‘clean slate’ so to speak. الجواب حامدا ومصليا ومنه الصدق والصواب A: You should first attempt to […]

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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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How can I subtract oustanding debts from my zakatable assets when the exact amount is unknown?

Q: I would like to find out what I should do in a situation where in I owe money to a few organisations but I don’t know how much as I owe this money was due years ago, do I take a rough calculation and subtract it from the nisab? الجواب حامدا ومصليا ومسلما ومنه […]

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Is the debtor considered poor, and thus eligible to Zakāt funds?

Q: Is the debtor considered poor, and thus eligible to Zakāt funds?    الجواب حامدا ومصليا ومنه الصدق والصواب   A: If the individual’s non-essential items do not cover the qualifying debts or do not reach the nisāb after covering qualifying debts then that person is considered poor and is eligible to receive zakāt.  It […]

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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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Is it permissible to use interest free finance to purchase a car?

Q. Please can you explain if it’s permissible to use interest free finance to purchase a car. Some showrooms let you hire-purchase cars where it’s interest free, with no deposit. There is a scheme for certain company employees that allow the following deal: 8% off rrp and 0% interest. This seems to be a popular […]

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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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What does one do If they can’t find a trustworthy executor for their wills?

Q: What does one do If they can’t find a trustworthy executor for their wills?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: One should seek to employ the services  of a competent solicitor who will undoubtedly be regulated by his/her professional body.

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Are you allowed to give money to pay off someone’s debt while knowing that part of that is likely to go towards paying off interest?

Q: Are you allowed to give money to pay off someone’s debt while knowing that part of that is likely to go towards paying off of interest? The recipient of the financial help is a non-Muslim.   الجواب حامدا ومصليا ومنه الصدق والصواب A: In principle, if you gift or lend someone some money that […]

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Would it be permissible to pay zakat to an institution who are to spend it 100% on the living essentials of their pupils?

Q: Would it be permissible to pay zakat to the institution who are to spend it 100% on feeding, clothing and living essentials of the pupils? الجواب حامدا ومصليا ومنه الصدق والصواب A: It is not sufficient to simply spend the zakat funds upon eligible recipients even if it is 100%.  This alone will not […]

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Is Zakat due on inheritance that is not received until a few years have passed?

Q: A man passes away leaving a wife and three children. The process of sorting out his estate takes 2-3 years in which time the family does not know exactly how much has been left behind and therefore they don’t know how much the are entitled to. Eventually the funds are received by the respective […]

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