Explanatory note

This Order, which comes into force on 1st April 2001, amends Group 8 of Schedule 8 to the Value Added Tax Act 1994 (c. 23) (“the Act”).

Fares for passenger transport are zero-rated if the passengers are transported in vehicles, ships or aircraft which have a minimum number of seats.

This Order reduces the minimum number of seats from 12 to 10.

The Order also allows zero-rating to apply where passengers are transported in vehicles which, but for the fact that they have been designed or adapted for wheelchair users, would have been capable of carrying 10 or more passengers.