V4.422 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 is inserted1.
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:
• a place of entertainment, recreation or amusement
• a place of cultural, scientific, historical or similar interest
by the person, or a person connected with that person, who supplies