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Background to reduced rate for cable-based transport

In the 2012 Budget, it was announced that the rate of VAT applicable to the carriage of passengers on small cable-based transport was to be reduced from 20 to 5% with effect from 2013. Consequently, and with effect from 1 April 2013, VATA 1994, Sch 7A, Group 13 was inserted¹.

Scope of reduced rate for cable-based transport

VATA 1994, Sch 7A, Group 13 provides that the reduced rate of 5% applies to the transport of passengers by means of a cable-suspended chair, bar, gondola or similar vehicle designed or adapted to carry not more than nine passengers.

The reduced rate does not apply² to the transport of passengers to, from, or within:

1. Ìý

   •ÌýÌýÌýÌý a place of entertainment, recreation or amusement

2. Ìý

   •ÌýÌýÌýÌý a place of cultural, scientific, historical or similar interest

by the person, or a person connected