Paying Zakah on loan

Question:

I got 8,000 pounds and I lent 5,000 to my friend. I have only 3,000 pounds, so do I have to give Zakah from all 8,000 pounds?
Fatwa:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) is His Slave and Messenger.

If your friend is able to repay his debt when you ask him to do so without delay, then it is your duty to give Zakah on all your property (including such a debt) that has been under your possession for one lunar year. This debt, in fact, is a form of deposit.
But, if your friend is procrastinating or unable to repay, then you have to give the Zakah for such a debt for one year only as soon as you receive it.
Allah Knows best.
Fatwa answered by: The Fatwa Center at Islamweb

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