Tax Credits Act 2002 Schedule 3 para 48

Amendment to VAT reduced rate provisions for grant-funded installations

Schedule 3 paragraph 48 updates the VAT legislation (Schedule 7A, Group 3) so that references to the old disabled person's tax credit and working families' tax credit are replaced with references to the new tax credits — child tax credit (excluding the family element) and working tax credit — for the purposes of determining eligibility for the reduced rate of VAT on grant-funded installation of heating equipment, security goods, and gas supply connections.

• The provision amends VAT Schedule 7A, Group 3, which deals with the reduced rate of VAT on certain grant-funded installations for benefit recipients.
• References to the now-abolished disabled person's tax credit and working families' tax credit are removed from the qualifying conditions.
• They are replaced with references to working tax credit and any element of child tax credit other than the family element.
• This ensures that recipients of the new tax credits continue to qualify for the reduced rate of VAT on eligible installations, such as heating equipment, security goods, and gas supply connections.