Explanatory note

This Order, which comes into force on 1st April 2002, varies Group 8 of Schedule 8 to the Value Added Tax Act 1994 (c. 23) which makes provision for the supply of certain goods at the zero rate.

The effect of this Order is to zero-rate the supply to sea rescue charities of equipment that is to be installed, incorporated or used in a lifeboat and is of a kind ordinarily installed, incorporated or used in a lifeboat. It also zero-rates the making of arrangements for such a supply.

The Order gives effect to Article 15.5 of Council Directive 77/388/EEC^f1 (“the Sixth Directive”) in so far as this relates to the supply of equipment that is to be incorporated or used in a vessel used for rescue or assistance at sea.