SE21900 - Benefits: exemption for workplace nurseries: general: purpose of the legislation: arrangement of guidance

Section 155A ICTA 1988

A Schedule E benefits charge arises when an employer provides childcare facilities for children of employees within Part V Chapter II ICTA 1988 (see SE21687).

There is a limited exemption from this charge. It mainly applies to workplace nurseries in some narrow circumstances. See SE21905 for an overview of the circumstances when exemption applies.

Purpose of the legislation

The purpose of the legislation is that the exemption should only apply when:

  • The narrow conditions for exemption are met (see SE21905) and
  • The charge to tax would otherwise be under Section 154 ICTA 1988. The exemption does not apply to
  • childcare paid for out of the employees emoluments chargeable under Section 19(1)1, or where any money paid out by the employer in respect of the childcare represents an application of the employee’s emoluments
  • childcare provided by means of non-cash vouchers or credit tokens (see generally SE16010 onwards).

Arrangement of guidance

SE21905Exemption for workplace nurseries – overview
SE21910Meaning of childcare
SE21915Premises provided by the employer – conditions to be met
SE21920Joint provision with other employers – further conditions
SE21925Responsibility for financing
SE21930Responsibility for management
SE21940Meaning of eligible children
SE21945Meaning of domestic premises
SE21950Registration requirements
SE21960Requests for pre-transaction rulings
SE21970Commercially marketed nursery schemes