Zakaah on wealth that is held in pledge

Question:

I borrowed some money and I gave some gold in pledge to the owner of the money in return for this loan. Do I have to pay zakaah on the gold?.

Answer:

Zakaah is due on property that is held in pledge if it is wealth that is subject to zakaah, but the one who is holding it in pledge may pay zakaah on it if the owner agrees to that. An example of that is a man who puts a flock of sheep – as livestock are subject to zakaah – in pledge with a person, and zakaah must be paid on it, because the fact that it is in pledge does not mean that zakaah is waived. So he may pay zakaah on it, but with the permission of the one with whim he put it in pledge.

Majmoo’ Fataawa Ibn ‘Uthaymeen (18/34).