Mr.D.E.Thomasasked the Chancellor of the Exchequer (1) what his estimate is of the sum of money accruing to the Inland Revenue from the extra tax paid by employees on the employer's subsidy to workplace nurseries, including backdated tax;
(2) how many letters he has received opposing the Inland Revenue's recent decision to treat employers' contributions to workplace nurseries as a taxable benefit.
§ Mr.MooreThe benefit that directors and certain employees (currently those earning at a rate of £8,500 a year or more) receive from most employer-subsidised nurseries has been liable to tax since 1948. Following recent publicity over one particular case, my right hon. Friend has received a total of 65 letters and other representations about the tax treatment of this benefit. I regret that a firm estimate of the tax yield from this benefit cannot be made.