Taxes Consolidation Act 1997 section 120A

Exemption from benefit in kind of certain childcare facilities

Section 120A provided an exemption from benefit-in-kind income tax on employer-provided or employer-supported childcare services for children of directors and employees, but this exemption ceased to apply from 2011 onwards.

• Employer-provided childcare services on qualifying premises were exempt from the benefit-in-kind charge under section 118(1), covering any form of child minding or supervised activity for children.
• Qualifying premises included those provided solely by the employer, jointly with others where the employer helped finance and manage the service, or by third parties where the employer contributed to financing and management.
• Where the employer's involvement was limited to funding capital expenditure on construction or refurbishment of the premises (without managing the service), the exemption was restricted to the amount of that capital expenditure.
• The exemption ceased to have effect for the year of assessment 2011 and all subsequent years of assessment, meaning this section is now spent.