Couple of questions on Zakat.

[betty44]

Assalamualaikum my brothers and sisters.

I would greatly appreciate it if anyone could answer the following questions. Some questions will only apply to the UK, so if there are any UK Redditors here, please feel free to answer those as well. Additionally, I am asking some questions on behalf of others I know.

1. What are the rulings on giving zakat on gold? Some sources on the internet suggest that if gold is used as an ornament, such as being utilized as an everyday object, then zakat doesn't need to be paid. However, others assert that you need to pay full zakat regardless of its use. Which is correct?
2. While studying full-time at the university, if the student's parents have a low income, then the student becomes eligible for a student bursary. This is for undergraduate students who are in the most need of financial support with the costs of studying, and this money does not need to be paid back to the institution; it is more like financial support than earned income. Do they pay zakat on this amount?
3. A brother is working as a full-time employee. During the year 2022-2023, he had an amount of £5000 (not disclosing the actual amount but it's in this range) in his bank account. In Ramadan 2023, he paid the full zakat amount of £125. Between 2023-2024, he managed to save an additional £3000, currently having £8000 in his account. Now, does he pay zakat for the full £8000 or just the amount he has earned between last Ramadan and this Ramadan, which is £3000?
4. At the workplace, I have a private pension contribution. One must be aged 55 or over to start taking money from their pension; therefore, I cannot withdraw any amount from it for the next 30 years or so. Do I need to pay zakat on the current value of the pension? If so, how much?
5. I also have invested some amount in Equity Funds. Do I pay the full zakat of 2.5% of the total value of the investment, or should I follow the guidance from (https://nzf.org.uk/knowledge/pensions/), where it suggests paying 2.5% of 27% (which is 0.675% of your pension)? I am not really sure where they derived this 27% or the other percentages for different funds.
6. I gave £X to a brother who was financially struggling a couple of years ago and agreed that he would pay some or all of the amount back soon when I first gave it to him. Some online zakat calculators ask if there is any amount owed to you, and when I enter it, it counts as a net asset and says I need to pay zakat on it. I am 99.99999...% or most certainly 100% sure that I am never going to get the money back from this brother for the next 10 or 15 years or so. Do I need to pay zakat on the £X that is owed to me?
7. The brother mentioned in point 3 has another question. He had to take out a loan to pay for his tuition fee in the UK. He has a debt of an unspecified amount, but I am certain it would be around £30,000. Now that he works full-time, the student loan is deducted from his payslip every month automatically by his employer. The monthly deductions are around £150'ish, so it's not a significant outgoing and not a liability that's due immediately. Is he still eligible to pay zakat?

Jazakallah Khair

 

[cz1611]

@betty44 Firstly, it is always best to ask a local scholar, and if you are in the UK, Islamic Dawah Academy has a fatwa phoneline

Now, to answer your questions and my answers are based on the Hanafi point of view

• Zakat is payable on the value of gold and silver, whether it is being worn or used as an ornament or not. It is also best to get it valued by a jeweller, as the purity varies, and therefore, the market price of gold isn't the best means of calculation
• And this also covers point 7, Student loans, and this is both the tuition fee loan and maintenance loan, are not treated as debts for the purpose of zakat as they are not payable within the next twelve months. The bursary itself is non-repayable, and therefore, if an individual still has that money in their bank accounts when it comes time for them to calculate their zakat, then zakat is payable on it
• Zakat is payable on the full savings one has, not just the increase. So, in the scenario you have stated, it is payable on the full £8,000
• Zakat on pensions is a complex area, as there are numerous variables and opinions on this, so I would recommend speaking to a local scholar
• Zakat is payable on the full value of the equity funds
• If you are certain they will not pay you back, then zakat is not payable on this amount, but if in future they do pay you back, then you will need to pay zakat on the money
• This was answered in point 2