The basic principle
Zakat is due on wealth that is liquid or intended for growth, has been held for a full lunar year (the hawl), and exceeds the nisab threshold. Investments fall into this category because they represent wealth that is growing and can be liquidated.
The general rule for stocks and funds: pay Zakat on the current market value of your holdings at your hawl date, at the standard rate of 2.5%.
ISUS and halal ETFs in a Trading 212 ISA
This is the most common scenario for British Muslim self-directed investors. The answer is yes, ISUS held inside a Stocks and Shares ISA is zakatable.
The ISA wrapper is a tax wrapper, not a lock-up. You can sell your ISUS holdings at any time. Because the funds are liquid and held for growth, Zakat is due on the market value at your hawl date.
How to calculate:
1. Note the value of your ISUS holdings on your hawl date (the anniversary of when your wealth first exceeded nisab).
2. Multiply by 2.5%.
3. That is your Zakat due on those holdings.
You hold £8,000 of ISUS in your Trading 212 ISA on your hawl date. Zakat due = £8,000 x 2.5% = £200.
Purification, is it the same as Zakat?
No. Purification and Zakat are separate obligations.
Purification is the removal of any small percentage of returns that came from incidental non-halal business activities within a screened fund. ISUS automatically handles purification, iShares calculates and deducts the impure income proportion. You do not need to do this manually.
Zakat is a separate annual obligation on the total value of your zakatable wealth. Purification does not count as Zakat and cannot replace it.
Wahed and robo-advisor portfolios
If you invest through Wahed Invest or Simply Ethical, the same principle applies, Zakat is due on the market value of your portfolio on your hawl date at 2.5%. Both platforms include Sukuk and equity components. The full portfolio value is zakatable unless the platform specifies otherwise.
Wahed publishes Zakat guidance for their investors. Check their help centre for the latest breakdown of which fund components are zakatable and at what rate.
What about pension investments?
This is a more complex area with genuine scholarly difference of opinion.
Defined contribution pensions (like NEST), most contemporary scholars say Zakat is not due on pension funds you cannot access yet (before age 57). The wealth is not freely available, so it is not considered zakatable until it is accessible. When you draw it down, Zakat becomes due on what you receive.
SIPPs (like Wahed SIPP), some scholars treat SIPPs differently because you have more control over the investments. This is an area where you should consult a qualified scholar for a personal ruling.
The prudent approach, if in doubt, pay Zakat on your pension. It is better to overpay Zakat than to underpay it.
What about crypto and gold?
Gold held as an investment is zakatable at 2.5% of market value if held for a hawl. Gold ETFs and gold savings accounts (like those offered by some Islamic banks) are also zakatable on the same basis.
Cryptocurrency is a contested area. Some scholars consider it zakatable as a form of tradeable asset; others do not recognise it as a form of wealth. This guide does not issue a ruling, consult a qualified scholar for your specific situation.
Use our Zakat calculator
Our Zakat calculator on the tools page lets you calculate your total Zakat including investments, savings, gold, and business stock. It uses live nisab values.
Open Zakat calculator →Not financial advice. MyHalalMoney is an information and comparison service only. Nothing on this page constitutes personal financial advice. Always seek independent advice before making financial decisions. This guide summarises common scholarly positions but does not constitute a fatwa or personal religious ruling. Please consult a qualified Islamic scholar for your specific circumstances.
✓ Verified June 2026
Frequently asked questions
For most retail investments (shares, ETFs, ISAs), the standard approach is to pay Zakat on the full current market value of your holdings, provided they have been held for a full lunar year above the nisab. Some scholars differentiate between short-term trading stock (fully zakatable) and long-term strategic investments (zakatable on a portion only). Consult a scholar for your specific portfolio.
Most scholars hold that pensions are not zakatable while you cannot access them — the wealth is not in your possession. Once you draw pension income or take a lump sum, that becomes zakatable in the normal way. If you are over 55 (57 from 2028) and could access your pension but choose not to, some scholars consider it zakatable. Seek specific scholarly guidance.
Purification (tazkiyah) is separate from Zakat. When a halal-screened fund generates a small percentage of income from impermissible sources (typically allowed up to 5% by most methodologies), scholars recommend donating that percentage to charity to "purify" your returns. This is additional to your 2.5% Zakat obligation, not a replacement for it.
Yes — gold ETFs and gold funds are considered equivalent to holding physical gold for Zakat purposes, as they represent an ownership interest in gold. Apply the gold nisab (87.48g) threshold. If your total zakatable wealth including gold holdings exceeds the nisab and has been held for a full hawl year, Zakat at 2.5% is due.