Citation and commencement

1. This Order may be cited as the Value Added Tax (Independence Payment) Order 2013 and comes into force on 8th April 2013.

Amendments to the Value Added Tax Act 1994

2. In Schedule 7A to the Value Added Tax Act 1994 (charge at reduced rate)( 2 ), in Group 3 (grant-funded installation of heating equipment or security goods or connection of gas supply), in Note 6(2), after sub-paragraph (f) insert—

“ (g) personal independence payment under Part 4 of the Welfare Reform Act 2012 ( 3 ) or the corresponding provision having effect in Northern Ireland;

(h) armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004 ( 4 ) . ” .

3. In Schedule 8 to the Value Added Tax Act 1994(zero-rating), in Group 12 (drugs, medicines, aids for the handicapped etc ) —

(a) in item 14, after “mobility component” insert “, of a personal independence payment by virtue of entitlement to the mobility component, of an armed forces independence payment”;

(b) in Note (6)(b)( 5 ), after “disability living allowance” insert “, the mobility component of the personal independence payment, armed forces independence payment”; and

(c) in Note (7), omit the “and” at the end of paragraph (a), and after that paragraph insert—

“ (aa) “personal independence payment” means a personal independence payment under Part 4 of the Welfare Reform Act 2012 or the corresponding provision having effect in Northern Ireland;

(ab) “armed forces independence payment” means an armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004; and ” .