Zakat due on Lifetime ISA

Assalaamu Alaykum,

I have a stocks and shares Lifetime ISA which does not accumulate interest. I am currently keeping my deposit as cash and not investing it, as described here:

I’m therefore just earning the 25% annual contribution from the government, though of course the LISA is subject to the condition that withdrawals before the age of 60/not for purchasing a new home are subject to a 25% government fee (I’m currently 25).

In calculating Zakat in recent years, the LISA slipped my mind - I was hoping to get some guidance on whether the entire deposited sum would be zakatable, or only a proportion of it.

Jazakumallahu Khayran

I asked a similar question on NZF and got a reply from Mufti Bilal Omarjee saying the full sum in the LISA is liable for zakat.

There was no mention of treating the government grant differently, despite the fact the grant is not available for you to spend on anything other than a house/until you turn 60.

I view the 25% grant as something that is earmarked for you and will be received once those conditions are met. So I’d like some further justification on this as well.

Wasalam

Barakallah fikum

Zakat on Lifetime Stock ISA is payable on 25% of the total value.

Zakat on Lifetime Cash ISA is payable on 100% of the total value.

And Allah knows best!

Thanks Mufti bilal.

Can you please elaborate the reason for why it’s only 25% for Stocks and shares ISA/LISA?