§ Mr. David HowellTo 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. MajorEmployees 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.
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