Zakat on ISAs – Is It Still Due?
Yes, money in an ISA (Individual Savings Account) is zakatable. The tax-free status does not exempt it from Zakat.
ISAs are tax-free in the UK, but this does not affect Zakat. Money held in an ISA is wealth you own and control, so Zakat is due if it is above nisab for one year.
Why ISAs Are Zakatable
Tax rules do not change Zakat rules.
Zakat is an Islamic obligation based on ownership and time. UK tax law does not determine whether Zakat is due. Money in an ISA is your wealth, so Zakat applies.
warning
Common Misconception
Add ISA balances to your Zakat calculation.
Include Your ISA