Zakatable Assets

Yes, Zakat is obligatory on all cash savings held in your possession, including in bank accounts (current, savings, or fixed deposit), cash at home, or online wallets. If the total of your liquid assets remains above the nisab threshold for one full lunar year, you must pay 2.5% of it as Zakat.

This includes all accessible funds, regardless of whether the money is in different banks or currencies. You must convert foreign currencies to your local currency using the current exchange rate before calculating your total zakatable wealth. The same applies to digital wallets such as PayPal, Revolut, or Wise—Zakat is due if the funds are usable and accessible.

Temporary fluctuations in savings due to withdrawals or deposits during the year do not affect your Zakat obligation, as long as the total wealth on your Zakat due date remains above the nisab. You should deduct any short-term debts or immediate liabilities due before paying.

Cash is one of the most straightforward assets to calculate. Still, many people underestimate its total, especially when funds are spread across multiple accounts. It's best to gather statements and calculate your total savings carefully.

At Global Helping Hands, we make it easy for you to calculate and distribute your Zakat accurately. Your cash-based Zakat goes directly to individuals in crisis, ensuring your obligation is fulfilled and your wealth is purified. It reaches those most in need in places like Palestine, Uganda, Lebanon, and among Syrian Refugees, following the Sunnah and under a 100% donation policy.

Zakat on pensions depends on the type and accessibility of the funds. If you do not have access to your pension—such as workplace pensions or government schemes locked until retirement—then you do not pay Zakat until the funds become accessible. Once withdrawn or accessible, Zakat becomes due if the total wealth meets the nisab and is held for a full lunar year.

For private pensions or self-managed retirement funds where you can make voluntary contributions or access funds early, Zakat may be due annually on the zakatable portion. This includes funds invested in stocks, mutual funds, or gold. You’ll need to assess the value of the zakatable assets within the pension (not the entire fund) and pay 2.5% accordingly.

If you're unsure about your pension's composition, you can make an estimated calculation or consult a scholar. You don’t need to pay Zakat on future pension payouts, only on the value that’s currently accessible or owned outright.

At Global Helping Hands, we recommend erring on the side of caution. If any portion of your pension is accessible and you have full ownership, Zakat is likely due. We can guide you through pension-related Zakat to ensure your contribution supports eligible recipients in regions like Syrian Refugees, Egypt, and Pakistan.

Yes, Zakat is due on shares, stocks, and investment portfolios, provided they meet the nisab threshold and have been held for a lunar year. The method of calculation depends on why you hold the shares.

If you buy shares with the intention to resell them for profit, they are treated as business stock. You must pay Zakat on their full market value at your Zakat due date. If you hold them for long-term investment, Zakat is due on the zakatable assets within the company—typically cash, inventory, and receivables—based on financial statements. If that’s too complex, you may pay 2.5% on the current market value of the shares as a precautionary approach.

Dividends from stocks are considered income, and if saved, become zakatable as part of your cash holdings.

Investments in mutual funds, ETFs, REITs, or Islamic bonds (sukuk) also require evaluation. If the fund is halal and transparent, Zakat applies based on the underlying assets. You may consult your investment platform or financial advisor for zakat values, as some Islamic fund providers offer Zakat calculations.

At Global Helping Hands, we help simplify this process. Whether you own shares in UK-listed companies or international funds, we guide you to calculate and give your Zakat in line with Islamic principles and ensure your wealth benefits those in urgent need—including Syrian Refugees, and others in crisis across more than 20 countries.

Yes, Zakat is due on cryptocurrency such as Bitcoin, Ethereum, and other digital assets if they meet or exceed the nisab threshold and are held for one lunar year. Scholars generally classify cryptocurrency as wealth or investment property, so it follows similar Zakat rules as cash or stocks. You must calculate the market value of your crypto holdings on your Zakat due date using the current exchange rate. Then, pay 2.5% of the total value.

Zakat is due whether your intention is to hold crypto as a long-term asset or to trade it. If you actively trade cryptocurrencies, your entire portfolio is zakatable. If you mine or stake crypto and receive rewards, those rewards are zakatable income. If retained for a year, the saved portion becomes part of your total zakatable assets.

Because crypto values fluctuate widely, you should use the price on your Zakat anniversary date. If your wallet is lost or funds are inaccessible, you are not required to pay Zakat until access is regained. Crypto can also be volatile, so it’s safer to pay early if your assets have been above nisab most of the year.

At Global Helping Hands, we recognise the growing role of digital assets. If you prefer, you can convert crypto to fiat and pay Zakat through our secure donation platform, ensuring it reaches eligible recipients in crisis-affected areas.

Zakat is not due on the value of the property itself if it is held for rental income and not for resale. However, Zakat is due on any unused rental income that you save and hold for one lunar year, provided it reaches the nisab threshold.

For example, if you own a flat that generates £800/month and you save a portion of it, Zakat is due on the saved amount—not the property value. If the rental income is immediately spent on necessary expenses like maintenance, taxes, or debt, and nothing remains above the nisab, then no Zakat is due.

If you hold property with the intention to sell for profit, it becomes a trade asset, and Zakat is due annually on its current market value. Similarly, Zakat is due on profits made from selling investment property if that money is retained and exceeds nisab.

Be careful with how you categorise your assets. The intention behind owning the property determines how you treat it in your Zakat calculation. At Global Helping Hands, we advise donors on complex asset evaluations so their Zakat obligations are fulfilled correctly and ethically.

Yes, if you have lent money to someone and you reasonably expect repayment, that amount is still considered your wealth, and Zakat is due on it. You can choose to pay Zakat on the full amount every year or wait until the debt is repaid and then pay Zakat for each past year it was owed.

However, if the loan is doubtful or unlikely to be repaid, then Zakat is not required until it is returned. At that point, you would pay one year’s Zakat upon receiving it, regardless of how long it was owed.

This applies to both formal and informal loans, including money lent to friends, family, or others. It also includes business loans or funds tied up in legal disputes—as long as repayment is expected.

Personal loans are often forgotten in Zakat calculations, but they are a key part of your wealth. Keep a record of amounts you have lent out and include them in your annual assessment if the likelihood of repayment remains strong.

At Global Helping Hands, we encourage transparency and thoroughness in Zakat calculations. Loans may be “out of sight,” but they are not exempt if you still hold claim to the money. We help ensure your Zakat is calculated and distributed correctly, reaching the poor with dignity and speed.

Yes, if you run a business, Zakat is due on business stock, cash in hand, profits, receivables, and goods held for resale. Zakat is not due on fixed assets such as office equipment, vehicles, or property used for business operations. Only the current assets intended for trade and sale are zakatable.

You should calculate the market value (not cost price) of all goods in stock on your Zakat due date and add it to your cash balance and receivables. Deduct any immediate business liabilities or debts due within the year. The remaining value is your zakatable business wealth, and 2.5% must be paid.

Service-based businesses (e.g. consulting or design services) still need to pay Zakat on cash, savings, and receivables, even if they don't have physical stock. Freelancers and sole traders must also assess their business income and expenses to determine the net zakatable amount.

Running a business does not exempt anyone from Zakat. In fact, it’s an opportunity to purify your trade and support those in need. At Global Helping Hands, we guide business owners through simple, accurate calculations so they can meet their duty with confidence and sincerity.

Yes, Zakat is due on money held in any currency, including foreign currency, digital bank accounts, or multi-currency wallets. Whether the money is in dollars, euros, or any other denomination, it must be converted to your local currency using the current exchange rate on your Zakat due date.

Once converted, combine all your assets—cash, foreign currency, gold, investments—and subtract short-term debts. If the total is equal to or above the nisab, you must pay 2.5% of that amount.

It doesn't matter where the money is held. Even funds abroad in overseas bank accounts or hidden in online wallets must be assessed. Accessibility and ownership determine your responsibility—not the currency type or location.

Many Muslims forget to include foreign currency savings, especially when they plan to use it for travel, Hajj, or family support. Unless that money is owed to someone else or is immediately due for expenses, it is part of your zakatable wealth.

At Global Helping Hands, we help donors with multi-currency wealth to assess and fulfil their Zakat obligations across borders. Your global assets can become a source of local impact for refugees, orphans, and struggling families.

Yes, Zakat is obligatory on all forms of gold and silver, regardless of whether they are used or stored. This includes coins, bullion bars, ornaments, or antique items made of gold or silver—even if you keep them purely for value or as collectibles.

Even if these items are never worn or used, Zakat is due at 2.5% of their current market value. You should weigh them to calculate their weight in grams and multiply by the live market rate for gold or silver. Deduct any impurities or non-zakatable components (like gemstones) before calculating.

Stored gold and silver are often considered a form of saving. Since Zakat purifies wealth that has the potential to grow or benefit others, these items are fully zakatable. Even heirloom gold or family pieces sitting unused in storage must be included if they belong to you.

At Global Helping Hands, we remind donors not to overlook these quiet, long-term assets. They can make a significant difference to those who receive cash Zakat in crisis regions like Palestine, Sudan, and Lebanon.

Yes, Zakat is due on all savings, even if they are earmarked for future goals such as Hajj, a wedding, or a house deposit—provided the amount meets the nisab and has been held for one lunar year. The intention behind the savings does not exempt them from Zakat.

Only immediate and unavoidable expenses—like overdue bills or debts due now—can be deducted. Long-term goals, even religious ones like Hajj, are not exempt unless the money is already paid to a Hajj operator or committed with no refund.

If you are saving for a wedding or house deposit in the future, and your total wealth remains above nisab for a year, you must pay 2.5% of the saved amount. This is a key principle in Islam—Zakat is on ownership, not intention. Delaying Zakat because you're “saving for something good” goes against this rule.

At Global Helping Hands, we help individuals meet their Zakat duty without jeopardising their future goals. Paying Zakat brings blessings and barakah, even to the savings you intend for personal milestones.

Zakat is not due on personal items that are not made of gold or silver and are not held for trade. This includes watches, artwork, designer bags, cars, or collectible items used for personal enjoyment. These are classified as non-zakatable assets, unless you specifically bought them to resell for profit.

However, if a valuable item is made of gold or silver, Zakat may be due based on its weight and purity. For example, a solid gold watch or silver cutlery set must be included in your calculation.

Also, if you’re a collector who buys items with the intention of trading them or profiting later, these may be considered business stock and therefore zakatable. Each case depends on intention and use.

Zakat is not meant to burden people for their personal belongings—it targets liquid wealth and assets with financial potential. Still, if you’re unsure whether a valuable item is zakatable, it’s better to check with a qualified scholar or take a cautious approach.

At Global Helping Hands, we help clarify these details and support donors in fulfilling their Zakat accurately, ensuring their wealth serves the most vulnerable in the ummah.