May the peace, mercy and blessing of Allah be upon you,

I bought a piece of land two years ago for a certain sum of money, let`s say, 100,000 pounds, and its value this month amounts to 350,000 pounds, and I want to pay zakat on it.

Would it be okay to pay zakat on the original price at which the piece of land was bought? Or do I have to pay zakat on the supposed price of the land at present? How much money do I have to pay?

May Allah reward you well.

If you bought it for investment purposes, you must pay zakat on its current value, which is 350,000 pounds. The amount of zakat that must be paid is one-fourth of a tenth, or 2.5%. If you bought it to build a house for yourself on it, then you do not have to pay zakat on it; and Allah Almighty is more exalted and more knowledgeable.