Remerciez-le!

Remerciez @Admin pour avoir partagé cet document gratuitement, de la manière la plus simple, en partageant sur les réseaux sociaux.

1 s t E t h i c a l C h a r i t a b l e Tr u s t ’s G u i d e t o Understanding

1 s t E t h i c a l C h a r i t a b l e Tr u s t ’s G u i d e t o Understanding & Calculating Zakah Edition IV TM Charitable Trust Who are 1st Ethical Charitable Trust? 1st Ethical Charitable Trust is the charitable arm of the 1st Ethical Group and is regulated by the Charities Commission. In addition to providing humanitarian relief, the Charitable Trust seeks to provide information to UK-based Muslims on how best to apply Shariah principles to common legal and financial concerns. The Charitable Trust has published guides on topics such as Zakah, Islamic wills, Halal investments and alternatives to interest, and also operates an extensive online Shariah resource library. For more information please visit www.1stethical.com. Who are 1st Ethical? 1st Ethical Limited are the only national firm of Shariah-compliant tax planners and FSA authorised financial advisers. We specialise in Islamic wills, Halal investments and pensions, tax efficient trusts and non-domicile/off-shore planning. We also advise companies and individuals on how to mitigate corporation, income and capital gains tax liabilities through a variety of tailored tax solutions. For more information please visit www.1stethical.com. No Copyright Notice 1st Ethical Charitable Trust hereby permits the use of this publication, with no copyright restrictions, subject to the following conditions: 1. Content must not be misrepresented or altered in any way. 2. Reference must be made to 1st Ethical Charitable Trust as the source of content. 1st Ethical Charitable Trust Springfield House | Springfield Court Summerfield Road | Bolton | BL3 2NT Phone: 01204 559914 | Fax: 01204 399786 Email: info@1stethical.com Website: www.1stethical.com Download the full set of FREE guides from our website www.1stethical.co.uk TM Charitable Trust The Problems with Interest Contents The Importance of Zakah TM 1st Ethical Charitable Trust Springfield Court Summerfield Road Bolton BL3 2NU Phone: 01204 559914 Fax: 01204 399786 Email: info@1stethical.com Website: www.1stethical.com Charitable Trust page 1. Introduction 3 2. What is Zakah? 4 3. Who Pays Zakah? 5 4. Who Receives Zakah? 5 4. Assets Subject to Zakah 6-7 5. When to Pay Zakah 8 6. Conditions for the Validity of Zakah 9 7. Zakah on Debts - Receivable and Payable 10-11 8. The Zakah Self-Assessment Form 12-13 9. Tax-Efficient Charitable Donations 14 9. Summary 15 The contents of this guide have been verified by the Al-Qalam Shariah Scholar Panel. www.alqalam.org.uk 1st Ethical: Charitable Trust 3 2 1st Ethical: Charitable Trust The Importance of Zakah All praise be to Allah, Creator of the heavens and the earth, and Owner of the Day of Judgement. We bear witness that there is no-one worthy of worship other than Allah (SWT), and that the Prophet Muhammed (SAW) is his final messenger. Islam encourages trade, entrepreneurial activity and the equitable distribution of wealth. In order for commerce to benefit society, Islam imposes several obligations on those involved in wealth-creation. Islam also encourages Muslims to be kind and helpful. This attitude is often manifested through the act of giving in charity. Whilst certain types of charity (Sadaqah) are optional, Islam has made the payment of Zakah a compulsory obligation upon each Muslim. Although Zakah is a fundamental pillar of faith, many Muslims are confused by the subject and are either paying Zakah incorrectly or worse still not paying it at all. Muslims may also be unaware of valuable tax concessions available on donations made to UK registered charities. These concessions can enhance the value of donations by at least 28% for a basic rate tax payer and even more for a higher rate tax payer, and are easily claimable in most cases by signing a simple declaration. This guide offers practical advice to UK based Muslims on tax-efficient Zakah-giving according to the Hanafi school of thought. People not affiliated to the Hanafi school should consult a scholar of their own choosing for further guidance. Zakah is the third pillar of Islam. It’s important is such that the Quran refers to Zakah in 82 separate verses and has associated Zakah immediately after Salah on 32 occasions. Scholars infer the giving of Zakah has both an outer and an inner dimension. The outer dimension involves the purification of a Muslim’s wealth. Zakah serves as a filter to keep out impurities from a believer’s wealth and for that wealth to then increase in a manner pleasing to Allah. The inner dimension suppresses the ego, and quells ugly tendencies such as greed, jealousy and miserliness. The Quran commands Muslims to: Establish regular prayer and give Zakah (73:20) The Prophet Muhammad (SAW) states: ‘If someone is given wealth by Allah but does not pay its Zakah, that wealth will appear to him on the Day of Judgement in the form of a bald serpent with 2 horns, encircling him and squeezing him all day, then holding him by the lips and telling him, “I am your wealth, the treasure which you hoarded”’ . (Bukhari & Muslim) What is Zakah? Who Pays Zakah? Who Receives Zakah? 1st Ethical: Charitable Trust 5 4 1st Ethical: Charitable Trust Those required to pay Zakah must be: Those barred from receiving Zakah: Example 1 Zaid has valued his Zakatable assets at £5,000 on his Zakah anniversary. He owes £4,900 to his brother and has no money owing to him. His Zakatable assets are therefore £5,000 - £4,900 = £100, which is below the Nisab threshold. Zaid is therefore not liable to pay Zakah. Example 2 Zahida has valued her Zakatable assets at £3,000 on her Zakah anniversary. Zahida owes £1,000 to various people. Zahida is also owed £3,000 by a friend. Her Zakatable assets are therefore £3,000 - £1,000 + £3,000 = £5,000. This makes her Zakah liability 2.5% of £5,000 = £125. Zakah is payable at a rate of 2.5% on all assets including those within the Nisab threshold. Those entitled to receive Zakah: What is Zakah? Zakah is commonly referred to as either a tax or as charity. Neither of these is accurate as Zakah is a divine duty. Zakah is considered a right of the poor over the rich. Withholding it is tantamount to depriving the poor of their God-given right. Allah (SWT) says of the wealthy in the Qur’an; ‘In their wealth there is a known share for the beggars and the destitute’ (70:24-25) ‘Take alms from their property that you may purify and sanctify them and pray for them. Verily your prayers are a comfort for them’ (9:103) Definition of Nisab The Nisab is the minimum amount of wealth upon which Zakah is payable. It represents the guaranteed minimum financial floor above which an individual is deemed to be ‘Sahib-un- Nisab’ (owner of wealth) and therefore liable to Zakah. The Nisab limit was set by the Prophet (SAW) at 20 Mithqual. This measure is equivalent to 87.48 grams of Gold or 612.36 grams of Silver. If a person only has Gold as an asset, then the Nisab measure for Gold must be used. If however the person has a mixture of assets, then the Nisab level for Silver should be used. To ascertain the current monetary equivalent of the Nisab limit, it is necessary to establish the market rate for a gram of Gold & Silver. This can be obtained from www.kitco.com. The current market rate (July 2008) for a gram of 24 carat Gold is £15.50, and £0.28 for a gram of Silver. Therefore, the Nisab threshold for Gold is approximately £1.355 and for Silver it is £171.47. A person will only pay Zakah if his Zakatable assets, after adding and subtracting debts owed either to or from others, is equal to, or in excess of £171.47. Preference should be given to relatives over the general public as Islam places great emphasis on the virtue of family ties. When giving Zakah, it is not necessary to inform the recipient of the nature of payment. (e.g. you can disguise the Zakah payment as a gift). The Quran, in Surah 9 verse 60 details those categories of people entitled to receive Zakah. The primary recipients of Zakah are the poor and destitute. These can be defined as those people whose total assets, excluding assets used for basic necessities (house, car furniture etc.), and after deducting outstanding basic living expenses and money owed to others, are less than the Nisab level. • Sane • Adult (have reached puberty) • Muslim (Zakah is not paid by non-Muslims) • Sahib-un-Nisab (Owner of wealth above the level of Nisab) • A Hashimi (Descendant of the Prophet Muhammed SAW) • The payer’s son or grandson • The payer’s father or grandfather • The payer’s spouse Assets Subject to Zakah 1st Ethical: Charitable Trust 7 6 1st Ethical: Charitable Trust 3. Business Assets (including Stocks, Shares, Property and Pensions) Assets can be categorised as follows: i. Property & other Fixed Assets The Zakah treatment for these assets is principally based upon the intention behind the purchase. We can classify intentions as follows: Clear Intention to resell If the asset is purchased with uploads/Geographie/ understanding-amp-calculating-zakah-1stethical-charitable-trust-x27-sguideto 1 .pdf