PART 4Excise duties and other taxes

Insurance premium tax

201Contracts that are not taxable

(1)

In Schedule 7A to FA 1994 (IPT: contracts that are not taxable), paragraph 3 (contracts relating to motor vehicles for use by handicapped persons) is amended as follows.

(2)

In sub-paragraph (2)(a)—

(a)

after “disability living allowance” insert “ , or personal independence payment, ” and

(b)

after “component” insert “ , or of an armed forces independence payment ”.

(3)

In sub-paragraph (3), after “disability living allowance” insert “ , personal independence payment, armed forces independence payment ”.

(4)

After sub-paragraph (4)(b) insert—

“(ba)

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;

(bb)

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

(5)

The amendments made by this section are treated as having come into force on 8 April 2013.