Answered by Mufti Muhammad Zubair Butt
Chair, Al-Qalam Shariah Panel
Question:
Respected Al Qalam Scholars
In the name of the Allah, The Beneficent, The Merciful
In recent years, Muslims living in the UK have been fortunate in being able to have access to Shari’ah compliant home purchase plans as an alternative to an interest bearing mortgage. A question arises over how these are to be treated for zakat purposes. Many Muslims assume Islamic home purchase plans are considered to be a debt, and debts are normally deducted from assets, with zakat payable on the net balance.
Also there are three main types of Shari’ah compliant home purchase plan on offer; Murabaha, Ijarah and Diminshing Mushrakah:
On the Hadith that the Ummah is Unlettered