SE21915 - Benefits: exemption for workplace nurseries - premises provided by the employer - conditions to be met

Section 155A ICTA 1988

The exemption for workplace nurseries (see SE21900) may apply if the childcare is provided on the employer's premises (see SE21905).

The employer may utilise part of their existing premises, or may acquire new premises or hire premises on licence (for example a village hall). Where such premises are made available by the employer to provide care for children the exemption will apply if three conditions are met:

• the child is eligible (see SE21940)
• the premises where the care is provided are not domestic premises (see SE21945)
• any registration requirements applying to the premises or the person providing the care are met (see SE21950).

You should note that if premises are made available by the employer alone exemption may be due even if the employer does not have any further involvement in the provision of the childcare. So, the exemption can apply if the day to day care was subcontracted to another person.

Contrived arrangements under which the employer leases an existing nursery and immediately leases it back to the nursery provider will not qualify for exemption.

• Remember that the exemption does not apply at all if the employee is chargeable under Section 19(1)1 ICTA 1988 because the childcare has been paid for out of their emoluments or the childcare represents an application of the employees emoluments (seeSE21900).