Fatwa ID: 08821
Written by Maulana Mohammed Aabu Saeed Miah
Question:
I have a Zakat question. I am a GP. To become a partner in the practice I had to buy a share in the building, through a loan. I make a monthly loan repayment. The amount of the monthly loan repayment is refunded to me by the practice so in effect I pay nothing but am slowly gaining ownership of the building. The building is used to conduct my GP business. When I retire, I will sell my share in the building and receive a profit. What element is Zakat due on, and when?
Loan cost £70,000
Monthly loan repayment £400
Monthly refund from practice £400
Potential sale of property in 5 years £90,000
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Zakat is mandatory on all who reach the nisaab. Alongside gold, silver, livestock, and cash, Zakat must be paid on goods bought for trade on the retail value. In your case, the share bought in the GP practice is not bought for trade, though you may sell it in the future. The purchase you made of the share in the practice will be regarded as ‘means for work’ and not a trading item. This means the practice will facilitate your occupation and not an asset upon which Zakat is mandatory. Therefore, you will not include your share of the practice in your Zakat calculations.
References:
الزَّكَاةُ وَاجِبَةٌ فِي عُرُوضِ التِّجَارَةِ كَائِنَةً مَا كَانَتْ إذَا بَلَغَتْ قِيمَتُهَا نِصَابًا مِنْ الْوَرِقِ وَالذَّهَبِ كَذَا فِي الْهِدَايَةِ. وَيُقَوَّمُ بِالْمَضْرُوبَةِ كَذَا فِي التَّبْيِينِ وَتُعْتَبَرُ الْقِيمَةُ عِنْدَ حَوَلَانِ الْحَوْلِ بَعْدَ أَنْ تَكُونَ قِيمَتُهَا فِي ابْتِدَاءِ الْحَوْلِ مِائَتَيْ دِرْهَمٍ مِنْ الدَّرَاهِمِ الْغَالِبِ عَلَيْهَا الْفِضَّةُ كَذَا فِي الْمُضْمَرَاتِ ثُمَّ فِي تَقْوِيمِ عُرُوضِ التِّجَارَةِ التَّخْيِيرُ يَقُومُ بِأَيِّهِمَا شَاءَ مِنْ الدَّرَاهِمِ وَالدَّنَانِيرِ إلَّا إذَا كَانَتْ لَا تَبْلُغُ بِأَحَدِهِمَا نِصَابًا فَحِينَئِذٍ تَعَيَّنَ التَّقْوِيمُ بِمَا يَبْلُغُ نِصَابًا هَكَذَا فِي الْبَحْرِ الرَّائِقِ. إذَا كَانَ لَهُ مِائَتَا قَفِيزٍ حِنْطَةً لِلتِّجَارَةِ تُسَاوِي مِائَتَيْ دِرْهَمٍ فَتَمَّ
ص179 – كتاب الفتاوى العالمكيرية الفتاوى الهندية – الفصل الثاني في العروض – المكتبة الشاملة
Only Allah knows best.
Written by Maulana Mohammed Aabu Saeed Miah
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
