§ Sir William Clarkasked the Chancellor of the Exchequer if it is the practice of the Inland Revenue that where a subsidised nursery creche is provided for staff the annual amount of such subsidy is added to the salary of the staff member for tax purposes, and that if the combined total exceeds £8,500 then the benefit of the subsidy is subject to income tax.
§ Mr. RidleyI understand that under the law, where an employer incurs expense in providing a facility for the private benefit of an employee or a group of employees with remuneration (including benefits) of £8,500 a year or more, liability to tax will arise under the benefits-in-kind legislation. I am always ready to consider representations about the scope of this legislation.