IPSA’s campaign to counter the Brexit threat to the benefits of Irish employees with SAYE share schemes is gathering momentum.
The issue and how it will affect thousands of Irish workers has received significant coverage in the media here – including in the Irish Times and on The Pat Kenny Show on Newstalk radio (need a url or soundcloud link – I can’t find it online). Now IPSA’s sister organisation ProShare UK has also highlighted the problem to government officials in the UK.
Unless financial passporting into the European Union continues for UK firms following Brexit, more than 10,000 Irish employees could be forced to liquidate their Save As You Earn (SAYE) savings early and face loss of benefits and negative tax consequences when they repatriate the moneyto Ireland.
That’s because two of the three main depositaries for Revenue-sanctioned SAYE schemes, Barclays and the Yorkshire Building Society, are based in England and do not have Irish banking licenses. Their UK licences are recognised throughout the EU under passporting regulations. This recognition is likely to end with Brexit and UK prime minister Theresa May has previously said that maintaining passporting is not an priority for her government.
IPSA and ProShare UK are working together to protect companies and employees with benefits in SAYE schemes in the event of Brexit. This includes advocating for the continuation of financial passporting and, in the event of a hard Brexit, a guarantee that workers impacted by this issue will not financially disadvantaged.