HC Deb 18 December 1989 vol 164 cc25-6W
Mr. David Howell

To ask the Chancellor of the Exchequer what is his policy on the taxation of benefits to employees accruing from the provision of workplace nurseries and creches.

Mr. Major

Employees pay income tax on their earnings whether received in cash or in kind. A subsidised place in a workplace nursery or creche is a benefit in kind and any subsidy is a proper subject for tax. The costs to the employer of subsidising workplace nurseries—or otherwise financing childcare for employees—is allowable against corporation tax.

Mr. Ryder

No. Cases differ, and need to be judged on their particular merits.

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