Q: Is Zakat due on savings for which Zakat was paid the previous year?
A: Yes, zakat is due on savings for which one has already paid zakat on from the previous year. Zakat is an annual obligation and every year on one’s Zakat anniversary, all the Zakatable assets are included in the calculation.
Example
Year: 2019
Savings:
Cash: £5000
Gold: £4500
Silver: £3700
Total Savings: £ (5000+4500+3700) = £13,200
Zakat @ 2.5%:
2019: £13,200 x 2.5% = £330 (Zakat)
Year: 2020
Cash: £500
Gold: £1000
Silver: £200
Total Savings: £(500 +1000 + 200) = £1700
Zakat @ 2.5%
2020: £1700 x 2.5% = £42.50 (Zakat is still due as the total savings exceeds the nisab for silver being approximately £287.69 at the time)
And Allah knows best.
Reviewed on: 11/10/21
Find out more about how your Zakat can help Muslims struggling through the cost of living crisis
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