Vol. 530 No. 6
59 Mr. Spring asked the Minister for Finance if he will carry out an assessment of the success or otherwise of tax incentives introduced in order to encourage the provision of nursing home and child care facilities; and if he will make a statement on the matter. [4688/01]
In recent budgets I provided for capital allowances in respect of buildings used as private registered nursing homes, convalescent homes and child care facilities. The capital allowances for nursing homes and convalescent homes are available at 15% per annum for years one to six and 10% in year seven. Accelerated capital allowances of 100% are available for child care facilities since budget 2000. In addition, the Finance Act, 1999, provided an exemption from a benefit-in-kind income tax charge where employers provide free or subsidised child care for their employees. The exemption applies where the employer makes a premises available or, if a joint scheme is involved, in both the management and financing of the child care facility.
Following representations from employer bodies and to improve the operation of the BIK exemption for employer provided child care, the Finance Bill, 2001, contains proposals to extend the exemption where employers are involved in financing, but not managing the facility. In such circumstances, the exemption will be restricted to cases where the employer provides financial support for items of capital expenditure and equipment, but not other costs. Where the employer is involved in the management of the facility, the current conditions regarding financing of the facility will continue to apply.
