SCHEDULES
F2SCHEDULE 7A INSURANCE PREMIUM TAX: CONTRACTS THAT ARE NOT TAXABLE
PART I DESCRIPTIONS OF CONTRACT
Contracts relating to motor vehicles for use by handicapped persons
3
1
A contract falls within this paragraph if it relates only to a motor vehicle and the conditions mentioned in sub-paragraph (2) below are satisfied.
2
The conditions referred to in sub-paragraph (1) above are that—
a
the vehicle is used, or intended for use, by a handicapped person in receipt of a disability living allowance F3, or personal independence payment, by virtue of entitlement to the mobility component F4, or of an armed forces independence payment F7, or of a mobility supplement or of disability assistance for children and young people F13, or disability assistance for working age people, by virtue of entitlement to the mobility component;
b
the insured lets such vehicles on hire to such persons in the course of a business consisting predominantly of the provision of motor vehicles to such persons; and
c
the insured does not in the course of the business let such vehicles on hire to such persons on terms other than qualifying terms.
3
For the purposes of sub-paragraph (2)(c) above a vehicle is let on qualifying terms to a person (the lessee) if the consideration for the letting consists wholly or partly of sums paid to the insured by—
F1a
the Department for Work and Pensions;
b
the Department of Health and Social Services for Northern Ireland; F8...
c
the Ministry of Defence F9; or
d
the Scottish Ministers,
on behalf of the lessee in respect of the disability living allowance F5, personal independence payment, armed forces independence payment F10, mobility F14supplement, disability assistance for children and young peopleF15or of disability assistance for working age people to which the lessee is entitled.
4
For the purposes of this paragraph—
a
“handicapped” means chronically sick or disabled;
b
F6ba
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;
c
“mobility supplement” means a mobility supplement within the meaning of article 26A of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 M3, article 25A of the Personal Injuries (Civilians) Scheme 1983 M4, article 3 of the Motor Vehicles (Exemption from Vehicles Excise Duty) Order 1985 M5 or article 3 of the Motor Vehicles (Exemption from Vehicles Excise Duty) (Northern Ireland) Order 1985 M6F11;
F12d
“disability assistance for children and young people” means a category of disability assistance specifically for children and young people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018 F16;
F17e
“disability assistance for working age people” means a category of disability assistance specifically for working age people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018.
Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5