Gerald Nash
Question:287. Deputy Ged Nash asked the Minister for Finance his plans to broaden the save-as-you-earn scheme out to financial institutions that take deposits but which may not be a bank. [37115/20]
View answerTuesday, 17 November 2020
Questions (287)
Written answers
Approved Save-As-You-Earn (SAYE) share option schemes were introduced in 1999 and are provided for in Chapter 3 of Part 17 of the Taxes Consolidation Act, 1997 (TCA) and Schedule 12A of that Act. The schemes are designed to foster employee financial participation and provide for relief from Income Tax, PRSI and Levies on share option gains.
As set out in section 519C of the Taxes Consolidated Acts, to qualify as a savings institution for the purpose of SAYE, a bank/savings institution must be:
- a person who is a holder of a licence granted under section 9 or an authorisation granted under section 9A of the Central Bank Act 1971, or a person who holds a licence or other similar authorisation under the law of an EEA state, other than the State, which corresponds to a licence granted under the said section 9,
- a building society within the meaning of section 256,
- a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989,
- the Post Office Savings Bank,
- a credit union within the meaning of the Credit Union Act, 1997, or
- such other person as the Minister for Finance may by order prescribe.
The Deputy will also be aware that I have recently prescribed by order two UK financial institutions - Yorkshire Building Society (YBS) and Barclays - in order to address a potential problem whereby, in the absence of action, in the case of no deal on EU-UK financial passporting rules by 31 December, Irish employees would lose any benefit in the form of tax relief associated with being members of their SAYE schemes.
I have no plans at present to extend the arrangements for save as you earn schemes beyond the those outlined above.