Is Zakat payable on rental income as well as on the share of property that is owned ?

Fatawa Question

1. Can you please confirm that Zakat is payable on rental income as well as the share of property that is owned. For example, if the annual rental income is £ 15,000 and the annual mortgage payment is £ 12,000, is Zakat due on the difference (£ 3000 in this example) if the person hasn’t spent any money from rental income ? 2. The rental property is worth £ 400 k and the person paid £ 100 k deposit to buy the rental property ; so the person owns 25 % of the property. I am referring to a typical high street mortgage where a person owns 25 % of the property and the remainder is a bank loan. When Zakat is due, the property is worth £ 500 k, 25 % of which is £ 125 k. Is Zakat also due on the share of the property and if so, is it due on £ 100 k or £ 125 k? Is Zakat only due on the share of property if the person had the intention to sell in the future ? If he doesn’t intend to ever sell it and has bought it for his children, is Zakat due on the share ?

Fatwa

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Publisher

al-Qalam Shariah Scholar Panel

Publication Date

2017-02-08

Country of Publication

United Kingdom

Main Subjects

Economy and Commerce
Religion
Law
Islamic Studies

Topics

• Islamic jurisprudence
• Islamic economics
• ٌLeasing
• Alms tax
• Ownership
• Revenue

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-727276

• APA
• MLA
• AMA