Zakat in the UK: who pays, what counts and how to give

Zakat is the third pillar of Islam and one of the clearest ways a Muslim worships through wealth. For many families in the UK it also raises practical questions: does it apply to me, what do I count, and who should I give to? This guide answers those questions in plain English, using the same figures as the Zakat pages on this website.

What Zakat is

Zakat is an obligatory annual charity of 2.5% on eligible wealth, once that wealth reaches a minimum amount called the nisab and a full lunar year (the hawl) has passed. It is not a gift you may choose to give or not; it is a right of those in need over a portion of your wealth.

The nisab: the minimum amount

Nisab is measured in gold or silver:

• Gold nisab: 7.5 tola, which is 87.48 grams.
• Silver nisab: 52.5 tola, which is 612.36 grams.

If the only wealth you hold is gold, the gold nisab is used. If you hold cash, silver, stock or a mix of wealth, the silver nisab is usually used. The pounds-and-pence value changes with the market, which is why our Zakat calculator uses live metal prices when they are available.

What counts towards your Zakat

The assets most UK households include are:

• gold and silver, including jewellery, even if it is worn;
• cash and bank savings;
• trade stock and business inventory held for sale;
• money owed to you that you expect to receive.

Some things are not zakatable: the home you live in, your personal car, furniture and everyday clothes.

What about debts?

Debts that are due now are usually deducted before you calculate. A mortgage is not subtracted in one go; only the instalments that are due are taken into account. If your situation is more complicated, respectfully consult a qualified scholar.

Working it out, step by step

1. Choose your Zakat date. Many people pick one fixed date each year, often in Ramadan, and calculate on that day.
2. Add up your zakatable assets on that date.
3. Subtract debts that are due now.
4. Check the nisab. If what is left is below the nisab, Zakat is not due on that estimate. If it is at or above it, continue.
5. Take 2.5% of the total. That is your Zakat.

For example, if your zakatable total after debts is £10,000 and it is above the nisab, your Zakat is £250.

Who can receive Zakat

The Holy Qur'an names the categories of people who may receive Zakat (Surah at-Tawbah, 9:60). In everyday terms these include people living in poverty or hardship and those weighed down by debt they cannot reasonably repay. Zakat has to reach eligible people, so it is wise to give through a trusted charity that understands the rules, or to consult a qualified scholar if you wish to give directly.

Zakat, Fitrana and Sadaqah are different

Wealth Zakat is calculated on your assets once a year. Fitrana (Sadaqat al-Fitr) is a separate payment given before the Eid prayer. Sadaqah is voluntary charity that you can give at any time, in any amount. Giving Sadaqah does not replace Zakat, and Zakat does not replace Sadaqah.

Giving your Zakat

If you would like to give your Zakat through Nagina Social Welfare UK, you can do so on our donation page, choosing Zakat as the type of gift and, if you wish, the centre it is for. We are a registered charity (1196514) with Madrasas in Peterborough and Manchester.

This article is educational guidance, not a personal fatwa. If you own a business, livestock or complex investments, or if you are unsure about your own case, please respectfully consult a qualified scholar.