For example, if you have held an ISA for a few years as a long-term investment with
no intention to sell, then Zakat is due on your proportionate ownership of the Zakatable assets of the companies in which you have invested. Normally this
is done by finding out which stocks you own, how many shares you own and then using
the company balance sheets to work out roughly what the Zakatable assets are in
each firm. If it is difficult for you to determine this then simply
- 1. Work out the market
value for your holding. Let's say in this case it is £10,000.
- 2. Take 40% of this
value – this comes to £4,000
- 3. Include this figure
on the asset side of your calculation before applying 2.5% to all your assets. 2.5%
of these assets would be £100
This is a proxy rule of thumb to help you factor in your share of the Zakatable
assets in the stocks you hold through your ISA.
The increase and decrease in portfolio value is irrelevant - only the current value