Value Added Tax (Reduced Rate) Order 1998
| Jurisdiction | UK Non-devolved |
| Citation | SI 1998/1375 |
1998No. 1375
VALUE ADDED TAX
The Value Added Tax (Reduced Rate) Order 1998
Approved by the House of Commons
3rdJune1998
3rdJune1998
1stJuly1998
The Treasury, in exercise of the powers conferred on them by section 2(1C) of the Value Added Tax Act 1994 ( a) and of all other powers enabling them in that behalf hereby make the following Order:
1. This Order may be cited as the Value Added Tax (Reduced Rate) Order 1998 and shall come into force on 1st July 1998 in relation to supplies made, or on equivalent acquisitions or importations occurring, on or after that date.
2. Schedule A1 (Charge at Reduced Rate) to the Value Added Tax Act 1994 ( b) shall be amended in accordance with Articles 3 to 6 below.
3. For sub-paragraph (1) of paragraph 1 there shall be substituted-
"(1) Subject to the following provisions of this Schedule, the supplies falling within this paragraph are-
(a) supplies for qualifying use of-(i) coal, coke, or other solid substances held out for sale solely as fuel;(ii) coal gas, water gas, producer gases or similar gases;(iii) petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;(iv) fuel oil, gas oil or kerosene; or(v) electricity, heat or air-conditioning;(b) supplies to a qualifying person of any services of installing energy-saving materials in the qualifying person's sole or main residence; and(c) supplies of energy-saving materials made to a qualifying person by a person who installs those materials in the qualifying person's sole or main residence.(1A) A supply to which sub-paragraph (1)(b) or (c) above applies is a supply falling within this paragraph only to the extent that the consideration for it is or is to be funded by a grant made under a relevant scheme.
(a) 1994 c. 23; subsection (1C) was inserted by section 21(2) of the Finance Act 1995 (c. 4).
(b) 1994 c. 23; Schedule A1 was inserted by section 21(3) of the Finance Act 1995 (c. 4).
(1B) Where a grant is made under a relevant scheme in order to fund a supply of a description falling within sub-paragraph (1)(b) or (c) above ("the relevant supply") and also to fund a supply to which neither of those sub-paragraphs applies ("the non-relevant supply") then the proportion of the grant that is to be attributed, for the purposes of sub-paragraph (1A) above, to the relevant supply shall be the same proportion as the consideration reasonably attributable to that supply bears to the consideration for that supply and for the non-relevant supply."
4. In paragraph 2(c) for "paragraph 1(1)(b)" there shall be substituted "paragraph 1(1)(a)(ii)".
5. In paragraph 4-
(a) in sub-paragraph (1) after...To continue reading
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