How to Pay Zakat in the UK

The 8 steps to paying Zakat in the UK

Calculate your Nisab threshold

Check today's silver Nisab (approximately £496–£499 in May 2026, based on 612.36g of silver). This is the minimum wealth you must hold before Zakat applies. Use gold (approximately £7,394) if your wealth is primarily in gold.

Find your Hawl anniversary date

Zakat is only due once you have held wealth above the Nisab for one full lunar year (354 days). Identify the date your savings first exceeded the Nisab — that is your annual Hawl date. If you don't know it, choose a fixed date you can remember (e.g. 1 Ramadan or 1 Muharram) and use it every year.

Total your zakatable assets

Add together: all cash in bank accounts (current, savings, ISA, Premium Bonds), market value of gold and silver you own, current value of stocks and shares and any share ISA, business trade stock at cost price, cryptocurrency at today's market value, money owed to you that you reasonably expect to receive, and pension funds you have access to.

Subtract your deductible debts

Deduct short-term debts that are currently due: credit card balances, personal loan instalments due this month, any overdue bills. For a mortgage, only the instalments due in the next 12 months are deductible — not the full outstanding balance. Net worth = assets − deductible debts.

Check you exceed the Nisab

If your net zakatable wealth on your Hawl date equals or exceeds the silver Nisab (approximately £499), Zakat is due. If it falls below, no Zakat is owed this year.

Calculate 2.5% on the total

Multiply your total net zakatable wealth by 0.025 (2.5%). For example: net wealth of £10,000 × 2.5% = £250 Zakat. There are no bands or tiers — it is a flat 2.5% on the entire qualifying amount, not just the excess above the Nisab.

Make the niyyah (intention)

Before paying, make the sincere intention (niyyah) in your heart that this payment is your Zakat obligation to Allah. You do not need to say it aloud. The niyyah can be made at the time of payment or when you set aside the funds with the intention of paying Zakat.

Pay to an eligible recipient or charity

Zakat must be paid to one of eight Quranic categories (Surah 9:60). The most common in the UK is the fuqara (poor) and masakin (destitute). You can pay directly to eligible individuals you know personally, or through a registered Islamic charity that distributes to these categories — such as World Aid Network, which operates a 100% Zakat policy.

UK-specific asset types — what counts as zakatable

Asset type	Zakatable?	How to value it
Cash ISA	Yes	Full balance on Hawl date
Stocks & Shares ISA	Yes	Market value on Hawl date
Lifetime ISA (LISA)	Yes, if accessible	Market value; deduct 25% withdrawal penalty if locked
Workplace pension (SIPP, DC)	Partial	Zakatable from age 55/57 when accessible — use fund value
Defined benefit (final salary) pension	Generally No	No cash equivalent accessible; most scholars exempt it
Premium Bonds	Yes	Face value of bonds held; prizes received are Sadaqah
Property — your home	No	Exempt — personal residence is not a zakatable asset
Rental property	Partial	Rental income in your account on Hawl date; not the property value
Cryptocurrency	Yes	Market value in GBP on Hawl date
Gold jewellery	Yes	Market value based on weight and carat purity
Car	No	Personal use assets are exempt

UK debts — what you can deduct

The UK debt picture is more complex than in some countries. Here's how to handle the most common debts:

Credit card balance: Fully deductible — deduct the full balance due
Personal loan: Deduct only the instalments due in the next 12 months, not the full outstanding balance (majority scholar view)
Mortgage: Deduct only the next 12 months of mortgage payments — not the full outstanding balance
Student loan: Most scholars consider UK student loans (income-contingent repayments) not deductible as they are not legally required to repay until earning above the threshold
Buy Now Pay Later (BNPL): Deductible if currently due or within 30 days
Overdraft: Fully deductible

Gift Aid — make your Zakat go further

When you pay Zakat through a UK-registered charity, you can add Gift Aid. The charity claims an extra 25p from HMRC for every £1 you donate — at no cost to you. This is unique to UK donors and is a major reason why paying through a UK charity is beneficial even when the recipients are abroad.

To use Gift Aid you must be a UK taxpayer paying at least as much income tax as the charity will claim. Simply tick the Gift Aid box when donating. World Aid Network is a registered charity and accepts Gift Aid.

Where to pay your Zakat

You can pay Zakat to any of these:

Directly to eligible individuals — family members (not parents or spouse) who are below the Nisab, or destitute non-family Muslims you know
Local mosque Zakat fund — if it has a verified distribution system
UK-registered Islamic charities — such as World Aid Network, NZF, Islamic Relief, Muslim Aid — who distribute to eligible recipients in the UK and globally

FAQs

Can I pay Zakat in the UK to someone abroad?

Yes. The majority of scholars permit paying Zakat across national borders, particularly when local need is not as acute or when the cause is clearly stronger elsewhere. This is why UK Muslims commonly pay Zakat through charities operating in Pakistan, Indonesia, Bangladesh, and other countries. There is no requirement for Zakat to be paid within the UK.

Do I pay Zakat in the UK differently from other countries?

The calculation is identical to anywhere else in the world — 2.5% of net zakatable wealth above the Nisab, after one Hawl year. What differs is the currency (Nisab expressed in GBP), the type of assets common in the UK (ISAs, SIPPs, stocks), and the ease of paying Gift Aid-eligible donations that allow charities to claim an additional 25p per £1 from HMRC.

Is Zakat tax-deductible in the UK?

Zakat paid through a registered charity is not personally tax-deductible for the donor in the same way Gift Aid works for the charity. However, if you are a higher-rate taxpayer, you can reclaim the difference between higher-rate and basic-rate tax on Gift Aid donations. Zakat itself is not deductible from your personal tax bill.

Can I set up a Zakat direct debit in the UK?

Yes. Paying monthly by standing order or direct debit is valid as long as you make the niyyah for each payment and the total paid by your Hawl anniversary equals or exceeds your calculated annual Zakat. If you overpay, the excess counts as voluntary Sadaqah. If you underpay, make up the shortfall before the next Hawl.

What is the easiest way to calculate Zakat in the UK?

Use our free Zakat calculator at zakat-calculator.org.uk/zakat-calculator. Enter your cash savings, gold and silver values (by weight or price), stocks, pension, and business assets. The calculator applies the current UK Nisab, deducts debts, and shows your exact obligation in pounds. It covers ISAs, SIPPs, crypto, and all UK-relevant asset types.

Can I pay my Zakat to a UK mosque?

Yes, provided the mosque distributes to eligible Zakat recipients. In the UK, many mosques have a Zakat fund that distributes to local Muslim families in need or remits to partner charities abroad. Confirm with the mosque that your donation will be treated as Zakat (not general Sadaqah) and distributed to qualifying recipients.

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