Zakat FAQs

For cash and similar wealth, Zakat is generally 2.5% of net eligible assets when the applicable nisab and hawl conditions are met. Add eligible assets, subtract permitted debts, and compare the total with your chosen nisab. Apply 2.5% to the whole eligible balance, not just the amount above nisab.

Eligible cash savings are normally combined with your other zakatable wealth. If the relevant nisab and hawl conditions are met, 2.5% applies to the net eligible amount. Money earmarked for a house, wedding or another future purchase is not automatically exempt merely because you have a plan for it.

An ISA does not automatically exempt wealth from Zakat. A cash ISA is assessed as cash; a stocks-and-shares ISA is assessed according to its investments and the approach you follow. A Lifetime ISA’s access conditions may require additional consideration. Count each account only once.

Pension Zakat depends on the scheme and the scholarly view you follow. NZF applies Zakat to the eligible underlying assets of defined contribution pensions, including SIPPs, even before access. Defined benefit and State Pension entitlements are treated differently. Reaching pension access age does not automatically make the full pot zakatable.

Shares and investment funds can contain zakatable wealth. Trading holdings are generally assessed at their market value. For long-term investments, an underlying-assets method assesses your share of eligible company assets; some people use a supported proxy or full market value. The correct approach depends on intention, holdings and scholarly guidance.

The Hanafi approach generally includes personal gold and silver jewellery in Zakat. Other Sunni schools generally exempt permissible personal-use jewellery, subject to their conditions. Jewellery held for trade is a separate case. This site’s general calculator includes gold and silver by default and explains that assumption.

Silver held as wealth can be zakatable. Value the eligible silver and combine it with other assets according to your chosen method. This site uses a silver nisab weight of 612.36g; another recognised convention uses 595g. Personal-use jewellery and other silver items can have school-specific treatment.

Some liabilities can reduce the amount on which Zakat is assessed, but the rules differ between scholars. Do not subtract every future expense or the full balance of a long-term mortgage or student loan. Identify what is actually payable, separate interest from principal, and follow one consistent approach.

A home used as your residence is generally excluded from zakatable assets. Its full outstanding mortgage is not automatically deducted from your other wealth. Treatment of principal instalments differs between scholars; identify the permitted amount under your method and distinguish it from interest and future expenses.

A UK student loan balance is not automatically a deduction from your eligible wealth. Establish which repayments, if any, are currently required or qualify under your chosen scholarly method. A repayment already deducted from income must not be deducted again from an already reduced bank balance.

Business Zakat generally concerns assets held for trade, eligible cash and recoverable receivables, less permitted liabilities. Premises and equipment used to run the business are usually treated differently from goods held for resale. Apply your ownership share and avoid duplicating business assets in your personal calculation.

Do not assume Premium Bonds are exempt from Zakat because their returns are paid as prizes. Assess the capital you own and establish the treatment of any prize income with a qualified scholar. Tax-free status and religious permissibility are separate questions; prize disposal is not automatically a Zakat payment.

Hawl is the lunar-year condition used for many forms of wealth Zakat. A lunar year is approximately 354 or 355 days. Your assessment depends on when eligible wealth reaches nisab and the rules you follow for changes during the year. A Gregorian annual reminder does not exactly follow a Hijri anniversary.

Zakat al-Fitr, also called Fitrana, is a Ramadan obligation assessed per eligible person and intended for distribution before the Eid prayer. It is separate from the 2.5% calculation for annual wealth. Food measures, cash payment and payer eligibility have school-specific rules; use your trusted mosque or provider’s current guidance.

Fidya and kaffarah are different obligations. Fidya may apply where a person cannot fast and is not expected to regain the ability. Kaffarah applies to specific violations with school-specific conditions. A cash multiplication cannot decide which applies or replace an obligation to make up or fast when required.

An eligible organisation can reclaim 25p for each £1 donated under Gift Aid when the donor and donation meet HMRC’s rules. You need a valid declaration and enough UK Income Tax or Capital Gains Tax to cover the tax reclaimed across your donations. Gift Aid does not automatically reduce your own Zakat obligation.

The calculator estimates annual wealth Zakat in GBP using values you enter. It combines eligible assets, subtracts entered permitted liabilities, checks your selected nisab and applies 2.5% when you confirm the hawl condition. It does not issue a personal ruling or verify the eligibility of an asset or recipient.