As-salamu alaykum,
I have recently started investing and had quite a few questions regarding Zakat, and hope someone can assist in sha Allah.
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I have opened an S&S ISA with Wahed Invest in their moderately aggressive portfolio, where 12.5% is in gold and 1.25% is cash, and the rest in funds and Sukuk. My intention is for long term growth in sha Allah. Can you advise for what proportion of the investments Zakat would be due? I have read different things, some where its based on the full investment, some where its based on 25%, but the full amount for the cash proportion.
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At the same time, I have also opened a Lifetime ISA, where the Government give a 25% bonus based on my contributions. Again, what is my Zakat due for this? Do I include the Government bonus? This is also with the intention for growth until I buy a house in sha Allah. I am invested in the HSBC Islamic Global Equity Index Fund.
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Also, at the same time I have opened a Junior ISA for my baby daughter. Will Zakat be due for these investments? If so, what proportion? I will be paying into the account but legally the money is hers, although she can’t access it until she is 18. Again, this is invested in the HSBC Islamic Fund.
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I have 3 pension funds, 1 where my current employer contributes, and 2 from previous employers. These were paid directly into the pensions as deductions from my salary, so I have never had the money per se, and will not have access until I retire. Is Zakat due on the pensions, and if so what proportion? I have read some places where it says its not due if the money was deducted directly from your salary, and elsewhere its based on 2.5% of 40%, i.e. 1%?
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I also have holdings of cryptocurrency, but I am not actively trading, rather I am hoping for long term growth. Again, what proportion is Zakat due on this?
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With regards to my pensions, I had a question regarding purification as I don’t know where they were invested previously. So one of my previous pensions is with Standard Life, and they have the HSBC Islamic Global Equity Pension Fund, so I have switched to that. Do I need to purify this? I don’t know what companies were invested in previously, but I would assume there would be some non-compliant shares. If so, what proportion? I know how much the fund has grown from the investment, and how much was contributed by myself and my previous employer, as that money I would think to be Halal.
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My other previous pension is with Scottish Widows. I have asked them if they have an Islamic Fund to switch to. If not, I intend to combine this with my Standard Life and will treat the money the same way as above.
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Lastly, my current workplace pension is with AON. I am finding out if there is an Islamic Fund to change to. Unfortunately I am not able to change provider whilst I am employed with this company. If there is no Islamic Fund, how and when do I purify this? At retirement when I have access to these funds? If I leave this employment, I could combine this with my Standard Life, but what would I need to do if I ended up staying until my retirement? That situation is unlikely because I am 32, but it would be good to know.
Sorry for all the questions!
Jazakallah in advance and may Allah reward you.
Regards,
Suhail