Question

Salaam,
I have agreed to give qardha hasanah to a charity for £5000. They have asked me to to claim gift aid on this amount. I was hesitant as I wasn’t sure if this was allowed. Will this be permissible as it is not a charitable donation rather it is an interest free loan. Please advise if I should agree and claim gift aid or if it is not permissible since I do not want to lose the rewards of my action

Jazakallah khair

Answer

You should first find out whether or not HMRC allow claiming gift aid on a loaned amount. If they do not allow then we would advise you avoid making this claim.

Answered by:
Ifta Research Fellow

Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel