Is Zakat payable on funds in a SAYE (Save As You Earn) Scheme for a Royal Mail Employee?
The answer
After speaking to the relevant organisations, we understand that Sharesave or Save As You Earn (SAYE) is a tax-efficient cash saving scheme that lets one save towards buying shares in their company. At the end of the savings period, one will have the opportunity (option) to buy shares in their company or take out savings in cash. The scheme has 2 components: a savings contract and a share option[1]. Furthermore, one may withdraw their funds at any time in this scheme for Royal Mail[2].
In short: Zakat is due on the funds held in the savings contract.
Explanation
Thus, Zakat is binding on the funds currently held in the savings contract. This is similar to any savings held in a financial institution and thus fully subject to Zakat.
And Allah knows best.
Mufti Faraz Adam
References
1http://www.shareview.co.uk/4/Info/Portfolio/Default/en/Home/help/employee/Pages/SAYEAppsFAQs.aspx
2http://www.shareview.co.uk/4/Info/Portfolio/Default/en/Home/help/employee/Pages/SAYECancelFAQs.aspx
Based on the Hanafi school and on the question as it was asked. Another mufti may reach a different conclusion. Read the disclaimer.