§ 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.26W