Part II

Income Tax, Corporation Tax and Capital Gains Tax
Chapter I

General

Benefits in kind

Care for children
21
1
The following section shall be inserted after section 155 of the Taxes Act 1988—

Care for children
155A
1
Where a benefit consists in the provision for the employee of care for a child, section 154 does not apply to the benefit to the extent that it is provided in qualifying circumstances.
2
For the purposes of subsection (1) above the benefit is provided in qualifying circumstances if—
a
the child falls within subsection (3) below,
b
the care is provided on premises which are not domestic premises,
c
the condition set out in subsection (4) below or the condition set out in subsection (5) below (or each of them) is fulfilled, and
d
in a case where the registration requirement applies, it is met.
3
The child falls within this subsection if—
a
he is a child for whom the employee has parental responsibility,
b
he is resident with the employee, or
c
he is a child of the employee and maintained at his expense.
4
The condition is that the care is provided on premises which are made available by the employer alone.
5
The condition is that—
a
the care is provided under arrangements made by persons who include the employer,
b
the care is provided on premises which are made available by one or more of those persons, and
c
under the arrangements the employer is wholly or partly responsible for financing and managing the provision of the care.
6
The registration requirement applies where—
a
the premises on which the care is provided are required to be registered under section 1 of the Nurseries and Child-Minders Regulation Act 1948 or section 11 of the Children and Young Persons Act (Northern Ireland) 1968, or
b
any person providing the care is required to be registered under section 71 of the Children Act 1989 with respect to the premises on which it is provided;
and the requirement is met if the premises are so registered or (as the case may be) the person is so registered.
7
In subsection (3)(c) above the reference to a child of the employee includes a reference to a stepchild of his.
8
In this section—
- “care” means any form of care or supervised activity, whether or not provided on a regular basis, but excluding supervised activity provided primarily for educational purposes;
- “child” means a person under the age of eighteen;
- “domestic premises” means any premises wholly or mainly used as a private dwelling;
- “parental responsibility” has the meaning given in section 3(1) of the Children Act 1989.
2
In section 154(2) of the Taxes Act 1988 for the words “section 155” there shall be substituted the words “sections 155 and 155A”.
3
This section applies for the year 1990-91 and subsequent years of assessment.
1948 c. 53.
1968 c. 34(N.I.)
1989 c. 41.