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HMRC internal manual

Employment Income Manual

Benefits: Exemptions: Workplace nurseries from 6 April 2005: partnership requirements: premises on which childcare is provided

Section 318(7)(a) and (b) ITEPA 2003

The partnership requirements included

(a) that the care is provided under arrangements made by persons who include the scheme employer, and

(b) that the premises on which it is provided are made available by one or more of those persons

These requirements must be construed in the context of the purpose of the legislation. That is to allow small employers, who might not individually be in a position to make available their own premises, to join together with other employers to finance and manage a childcare facility. In that regard, the “partnership” involves only the employers who jointly wish to provide nursery facilities for children of their employees and the scope of “those persons” does not stretch to the inclusion of a commercial childcare provider. Consequently, premises made available by a commercial childcare provider will not satisfy the condition.