1. This Order may be cited as the Value Added Tax (Health and Welfare) Order 2002 and comes into force on 21st March 2002.

2. Group 7 (Health and Welfare)( 2 ) of Schedule 9 to the Value Added Tax Act 1994 (Exemptions) shall be varied in accordance with articles 3 to 6 below.

3. In item 4, for the words from “or other institution” to the end substitute “or state-regulated institution”.

4. For item 9 substitute—

“ 9 The supply by—

(a) a charity,

(b) a state-regulated private welfare institution, or

(c) a public body,

of welfare services and of goods supplied in connection with those welfare services. ” .

5. For Note (6) substitute—

“ (6) In item 9 “welfare services” means services which are directly connected with—

(a) the provision of care, treatment or instruction designed to promote the physical or mental welfare of elderly, sick, distressed or disabled persons,

(b) the care or protection of children and young persons, or

(c) the provision of spiritual welfare by a religious institution as part of a course of instruction or a retreat, not being a course or a retreat designed primarily to provide recreation or a holiday,

and, in the case of services supplied by a state-regulated private welfare institution, includes only those services in respect of which the institution is so regulated. ” .

6. After Note (7) insert—

“ (8) In this Group “state-regulated” means approved, licensed, registered or exempted from registration by any Minister or other authority pursuant to a provision of a public general Act, other than a provision that is capable of being brought into effect at different times in relation to different local authority areas.

• Here “ Act ” means—

  (a)

  an Act of Parliament;

  (b)

  an Act of the Scottish Parliament;

  (c)

  an Act of the Northern Ireland Assembly;

  (d)

  an Order in Council under Schedule 1 to the Northern Ireland Act 1974 ( 3 ) ;

  (e)

  a Measure of the Northern Ireland Assembly established under section 1 of the Northern Ireland Assembly Act 1973 ( 4 ) ;

  (f)

  an Order in Council under section 1(3) of the Northern Ireland (Temporary Provisions) Act 1972 ( 5 ) ;

  (g)

  an Act of the Parliament of Northern Ireland. ” .