Cash

Cash is fully subject to Zakat

Include cash in all your bank accounts, your wallet and even under your mattress!

If interest has been earned, ionly the principal amount should be noted for Zakat purposes

Consider how much cash you possess:

• In your personal bank account(s)
• In hand
• In foreign currency
  (please use www.xe.com to convert to English pounds)

Enter the value of my cash minus interest:

Your
assets

The first step to calculating your Zakat is to identify all your Zakatable assets. Enter your Zakatable assets using a name and a value.

You can name these items to help you identify your assets. E.g Wedding gold, Current account etc. This is optional.

• Save and retrieve all information relating
  to your current calculation whenever needed
• Receive email reminders when your Zakat is due
• Download previous Zakat calculations
• View your previous donations and Zakat payments
• All this information will be saved under MY ACCOUNT

Gold

The current gold price is £30.90 per gram.

NZF adopts the view that all gold (jewellery, coin, ingots etc.) is subject to Zakat.

Your jeweller can tell you the current value they would buy your gold assets for.

Alternatively you can obtain the market value based on today's live gold price.

This is known as 'universal measurement' and whilst this gives a slightly higher value, it ensures your Zakat payment is not undervalued. This value assumes you own 24 carat gold.

Enter how much gold you possess in terms of its weight or its resale value:

Silver

The current silver price is £0.40 per gram.

NZF adopts the view that all silver (jewellery, coin, ingots etc.) is subject to Zakat.

Your jeweller can tell you the current value they would buy your silver assets for.

Alternatively, you an obtain the market value based on today's live silver price. This is known as 'universal measurement' and whilst this gives a slightly higher value, it ensures your Zakat payment is not undervalued.

Enter how much silver you possess in terms of its weight or its resale value:

Shares & equity investments

If shares are purchased with the express intention for resale, then the entire holding is subject to Zakat at the current market value.

If, however, shares are purchased as long-term investment to generate dividends, then Zakat is only due on the Zakatable assets of the firm and a realistic attempt must be made to calculate the percentage of the share holding relating to Zakatable assets.

Any dividends received should be added to the cash balance.

Equity investments with interest-based returns are prohibited in Islam. Zakat is still due on the non interest proportion of the investment that is permissible i.e. halal.

Enter shares and investments you possess:

Property & fixed assets

Property and other fixed assets does not include the home you live in but includes property purchased with the intention to make profit from reselling.

In addition, the value of leased property is not subject to Zakat.

Only the rental income is subject to Zakat.

Enter property and fixed assets you possess:

Pension

Zakat is payable in full on pensions received after retirement.

For monies set aside for pensions prior to retirement, Zakat is only payable if the pension assets are being invested on behalf of the pension holder and if there is a specific quantum of wealth attributed to the pension holder.

This is the case in money purchase schemes but not in final salary schemes where the pension holder never secures ownership of the pension contributions prior to actually receiving the pension.

Enter the pension monies you possess:

Debts owed to you

Zakat is payable on strong debts, i.e. money you are confident will be repaid to you, for example personal loans to family.

This does not include outstanding wages, dowry, inheritance or assets held in trust (other than assets held under a Bare Trust)

Enter debts owed to you:

Cash Investments

Cash investments such as bonds or savings products offered by your bank, which offer an interest-based return are prohibited in Islam. Although there is no Zakat due on forbidden wealth, Zakat is still due on the proportion of the investment that is halal.

For example if Ali invested £10,000 in a bond that has been yielding 7% return based on interest, then Zakat is due only on the original investment (or principal value), subtracting any interest received.

If you own an interest-bearing asset, you are advised to sell it, give away the money earned in interest to charity and use the remaining money in a halal manner.

Please state the value of any other investments you possess, subtracting any interest accrued.

The interest portion of your income can be given away to The National Zakat Foundation by inputting the amount on our Donation page under Riba (Interest).

Business assets

Identify which business assets are liable for Zakat.

Zakat on your business is not just on the profits, but on the company's assets listed on the company balance sheet.

Business assets liable for Zakat include:

• Cash
• Finished goods
• Work in progress
• Work in progress
• Strong debts, i.e. money owed to the business that is likely to be received
• All business assets should be valued at their current market price

For finished goods, this is the retail price.

For unfinished goods, this is the price you expect them to fetch on your Zakat anniversary date.

Assets that are not included in my Zakat calculation are:

• Fixed assets not held with the intention of resale, as this is similar to the house that you are living in
• If you have business liabilities due before the Zakat anniversary to offset against these assets, then you will be able to enter these in the next section: Business debts/liabilities
• Please only include business assets in line with your percentage (%) ownership of the business

Enter my business assets:

Bonds

Bonds offer an interest-based return and are therefore prohibited in Islam. Although there is no Zakat due on forbidden wealth, Zakat is still due on the proportion of the investment that is halal.

For example, if Ali invested £10,000 in a bond that has been yielding 7% return based on interest, then Zakat is due only on the original investment (or the principal value), subtracting any interest received.

If you own an interest-bearing bond, then you are advised to sell it, give away the interest money received in charity and use the remaining money in a halal manner.

Other

Please use this section to input the value of any other Zakatable assets that you feel may have been omitted. Should you need to ask a question please don't hesitate to get in touch

Personalliabilities

For long-term debt, such as mortgages or student loans, the non-interest or principal portion only of the forthcoming lunar year's worth of payments can be deducted for Zakat calculation purposes if one's ability to repay one's debts may be negatively impacted (this is the principal amount only, not the interest).

Remember that mortgages typically offered by high street banks are interest bearing and impermissible.

Please include:

• Overdue rent or mortgage payments
• Overdue essential living expenses such as utility bills
• Other bills
• The forthcoming year's non-interest portion of my long-term debt
• Money that you owe to third parties for completed purchases
• Other bills

Enter your deductible debts/liabilities:

Your liabilities

The third step to calculating your Zakat is to identify all your deductible liabilities. Enter your deductible liabilities using a name and a value.

You can name these items to help you identify your liabilities. E.g Credit card, Student loan etc. This is optional.

• Save and retrieve all information relating
  to your current calculation whenever needed
• Receive email reminders when your Zakat is due
• Download previous Zakat calculations
• View your previous donations and Zakat payments
• All this information will be saved under MY ACCOUNT

Businessliabilities

Please include the value of any of the following outstanding or overdue unpaid liabilities such as:

• rent, bills and salaries
• outstanding short-term commercial loans
• next year's non-interest portion of long-term business debt
• value of goods purchased on credit
• Please note, short-term is less than 12 lunar months

Enter your business debts/liabilities: