Is The Lifetime ISA Shariah Compliant?

pounds

Question:

Is The Lifetime ISA Shariah Compliant? 

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The Answer:

As long as the Lifetime ISA account[1] does not accrue interest or is invested in Shariah compliant shares, the ISA will be compliant.  If the ISA accrues interest or is invested in non-Shariah compliant shares, the ISA will not be compliant.

The 25% government bonus is permissible to receive.

The Fiqh (jurisprudence of the answer):

The government bonus is in the ruling of a conditional gift and lawful upon receipt. 

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam al-Mahmudi,
www.darulfiqh.com

 

DISCLAIMER:

The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any institutions to which he may be affiliated.

Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author. Whilst every effort has been taken to ensure total accuracy and soundness from a Shari’ah perspective, the author is open to any correction or juristic guidance. On the event of any juristic shortcomings, the author will retract any or all of the conclusions expressed within this answer.

The Shari’ah ruling given herein is based specifically on the scenario in question.  The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage.  This answer may not be used as evidence in any court of law without prior written consent from the author.  Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain.

 


[1] https://www.moneyadviceservice.org.uk/en/articles/a-guide-to-lifetime-isas

https://www.mrlender.com/blog/beginners-guide-lifetime-isa/

https://www.ft.com/content/8e78606a-ec78-11e5-888e-2eadd5fbc4a4

https://www.fca.org.uk/publication/consultation/cp16-32.pdf

 

 

About the author:

. Follow him on Twitter / Facebook.