Your Zakat Assets
Include: Cash both in hand and in all bank accounts (current and savings), cash lent to others, salary, benefits and rental income etc.
Cash in Bank Accounts
Money lent to others (if you are sure that the money will be returned)
Crypto currency: Enter the value in pounds
Gold and silver in all forms, including jewellery:
value your gold at your local jeweller
anything you buy with the intention of trade
This can be if you buy and sell products online or you have a shop outlet. You have to add all your inventory at the sale price not the buying price.
● STOCK: if there are raw materials include current value.
Stocks and shares:
stock held in business have Zakāt on their market value. With regards to shares if they were bought as commodities then the market value of the shares is determined as an asset. However, if bought as a long-term investment then the Zakatable proportion represented in the share and the annual dividends would be added instead.
The zakatable portion of personal pensions and ‘money purchase’ pensions have to be determined on the Zakāt date and considered as an asset. As for final salary pensions, they are not Zakatable.
If a property is purchased solely for earning rent and not to sell at a later date, the property itself is not Zakatable. Any rental income that remains on the Zakāt due date is, however, Zakatable. However, if you purchased a property to sell at a later date for profit, then you have to pay Zakāt on the total value of your property at the market value on the Zakāt due date.
Livestock & land:
You may have livestock and land in your ownership. Please refer to the livestock guide for more details. If the land is purchased with the intention to sell you have to include the current market value.
Minus all your liabilities
● Outstanding utility bills
● All arrears and overdue payments
● Mortgage: only deduct one month payment at your Zakat date
● Long term debts: deduct one month payment if you paying in instalments etc.
● Credit Card
● Business Liabilities
Work out your Zakat amount
Once you have added your total Zakatable assets – then deducted all your liabilities – you pay 2.5% of the total remaining amount.
Summary of your Zakat calculation