HC Deb 03 November 1989 vol 159 c359W
Mr. Spearing

To ask the Chancellor of the Exchequer what rules he applies to parents receiving vouchers or allowances in lieu of child care facilities not provided by employers; and what concessions he makes to those employers who do.

Mr. Lilley

Under the normal business tax rules, employers qualify for tax relief on day-to-day expenditure on all forms of child care provision for their employees' children, including cash allowances and vouchers. Tax relief is also available for certain capital expenditure on child care facilities. Cash allowances or vouchers given by employers to employees in lieu of child care facilities are taxable under the normal income tax rules.