Zakat, a cornerstone of Islamic practice, is an obligatory form of charity that promotes wealth distribution within the Muslim community.
This article explores the rules and conditions of Zakat al-Mal, its importance, various types, and specific considerations for Muslims in the UK. We also discuss how to seek and apply for Zakat in the UK, along with eligibility and tax implications.
Learn the importance, rules, and application of Zakat Money in UK, including eligibility and tax considerations.
Zakat Al mal Rules and Conditions
Zakat al-Mal is the mandatory giving of a portion of one’s wealth to those in need.
The essential conditions include meeting the Nisab threshold, which is the minimum amount of wealth one must have before being liable to pay Zakat, typically equivalent to 87.48 grams of gold or 612.36 grams of silver.
Additionally, the wealth must be held for one lunar year (Hawl), and the rate of Zakat is generally 2.5% of the total wealth above the Nisab.
Hukum Zakat Mal and Why Paid
The hukum (legal ruling) of Zakat al-Mal is that it is fard (obligatory) for all eligible Muslims. It is paid as a means of purifying one’s wealth and redistributing it to support those in need,
The Quran emphasizes the importance of Zakat in several verses, including:
“Take from their wealth a charity by which you purify them and cause them increase, and invoke [Allah’s blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing” (Quran).
Why is Zakat Important?
Zakat is crucial in promoting social justice by redistributing wealth and reducing economic disparities.
It purifies the giver’s wealth, fosters a sense of community, and supports those in need, ensuring that basic needs are met within society.
Type of Zakat al Mal
Different forms of Zakat al-Mal include:
- Investments: Includes stocks and shares.
- Business Assets: Covers inventory and profits.
- Gold and Silver: Payable on jewelry and bullion.
- Savings: Applicable to cash and savings held for a lunar year.
Facts About Zakat Money in UK
In the UK, Muslims are required to calculate and pay Zakat on wealth exceeding the Nisab.
Various organizations facilitate the collection and distribution of Zakat, ensuring compliance with Islamic guidelines.
However, it is important to note that Zakat is not tax-deductible in the UK.
Apply for Zakat Money in UK
To apply for Zakat, you can visit the websites of organizations like the Zakat Foundation UK and the National Zakat Foundation, where you will find application forms and guidance on eligibility criteria.
Is Zakat Tax Deductible in UK?
In the UK, Zakat is not tax-deductible. This means that while it fulfills a religious obligation, it does not reduce your taxable income or provide any tax relief.
Is Zakat Payable on VAT in the UK?
Zakat is calculated on net wealth, which means that any owed taxes, such as VAT, should be excluded from the total amount before calculating Zakat.
Ask for Help From Zakat Money in UK
If you are in need of financial assistance, several organizations in the UK provide support through Zakat.
These include the Zakat Foundation UK, the National Zakat Foundation (NZF), Human Appeal, and Islamic Relief.
Zakat Foundation UK
The Zakat Foundation UK is dedicated to helping those in need by collecting and distributing Zakat funds. They offer various programs to support eligible individuals and families.
Zakat Foundation UK Apply
The Zakat Foundation UK has an application process for those seeking assistance.
Applicants can visit their website, complete the necessary forms, and provide required documentation to apply for support.
National Zakat Foundation
The National Zakat Foundation focuses on addressing poverty and hardship within the UK Muslim community.
They provide grants and support services to help those in need.
Human Appeal and Islamic Relief Zakat al-Mal
Both Human Appeal and Islamic Relief are prominent organizations that facilitate Zakat collection and distribution.
They assess individual needs and ensure that Zakat reaches eligible recipients.
How to Give Zakat Money in UK?
To give Zakat on money, calculate your total wealth, subtract liabilities, and ensure it exceeds the Nisab.
Pay 2.5% of the remaining amount to eligible recipients or through trusted organizations.
Zakat to Family Members
Zakat can be given to eligible family members, excluding direct descendants (parents, grandparents) and ascendants (children, grandchildren).
Zakat on Money Less Than a Year
Zakat is not due on wealth held for less than a lunar year. It is only payable on wealth that has been in your possession for a full lunar year.
Zakat on Haram Money
Wealth acquired through impermissible means must be disposed of and is not eligible for Zakat.
Such wealth should be given away in charity without the intention of seeking reward.
Zakat on Loaned Money Hanafi school
According to the Hanafi school of thought, Zakat is due on money lent out if it is expected to be repaid.
The lender must include this amount in their total wealth when calculating Zakat.
What is Zakat Used For in UK?
Zakat funds are used to support various causes, including poverty alleviation, education, healthcare, and community development.
These funds provide financial assistance to those in need, fund scholarships and educational programs, support medical treatments and health services, and finance projects that benefit the wider community.
Who is Eligible for Zakat?
Eligibility for Zakat is based on need and financial status. It is intended for Muslims who fall into one of the eight categories mentioned above, ensuring that those most in need receive support.
By understanding and adhering to the rules and guidelines of Zakat al-Mal, Muslims in the UK can fulfill their religious obligations while contributing to the welfare and development of their community.
Who to Give Zakat to in the UK?
Eligible recipients of Zakat, known as Asnaf, include:
- Wayfarers: Stranded travelers in need of assistance.
- Those in Debt: Individuals unable to repay their debts.
- New Muslims: Converts to Islam in need of financial support.
- In the Path of Allah: Supporting religious and community causes.
- The Poor (Fakir): Those without sufficient means to meet basic needs.
- Zakat Administrators: Individuals responsible for collecting and distributing Zakat.
- The Needy (Miskin): Those with limited means but not sufficient to cover all needs.
Masarat Initiative for Education and Youth Empowerment in Northern Syria
Driven by our humanitarian and societal duty, Masarat Initiative was established to support children and youth in Northern Syria in the areas of education, care, and other related services.
Our entirely free initiative targets the most affected groups, such as orphans, individuals with special needs, those who have been out of education for extended periods, and residents of displaced persons’ camps.
Masarat Initiative stands out by opening the door for donations and humanitarian contributions from those who wish to participate, by paying their Zakat to the initiative’s fund.
This support serves as a lifeline for our children, potentially opening doors to a future that rescues them from their current suffering and deprivation.
