Finance Act, 1985

Amendment of section 11 (rates of tax) of Principal Act.

43.—Section 11 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (1) (inserted by the Act of 1978):

“(1) Tax shall be charged at whichever of the following rates is appropriate in any particular case—

(a) 23 per cent. of the amount on which tax is chargeable in relation to the supply of taxable goods or services, other than goods or services on which tax is chargeable at any of the rates specified in paragraphs (b), (c) and (d),

(b) zero per cent. of the amount on which tax is chargeable in relation to the supply of any goods in the circumstances specified in paragraph (i) of the Second Schedule or the supply of goods of a kind specified in paragraphs (v), (vii), (viii), (x), (xii) to (xva) and (xvii) to (xx) of that Schedule or the supply of services of a kind specified in that Schedule,

(c) 10 per cent. of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in the Sixth Schedule, and

(d) 2.2 per cent. of the amount on which tax is chargeable in relation to the supply of livestock.”,

(b) by the deletion of subsection (2) (inserted by the Act of 1978),

(c) in subsection (3) (inserted by the Act of 1978), by the deletion of “(apart from subsection (2))” in paragraph (b) (ii),

(d) in subsection (7) (inserted by the Act of 1976)—

(i) by the substitution in paragraph (e) (i) of “taxable goods” for “any goods to which, but for this subsection, subsection (1) (a), subsection (1) (aa), subsection (1) (aaa) or subsection (1) (b) would apply”, and

(ii) by the substitution in paragraph (e) (ii) of “taxable services” for “any services to which, but for this subsection, subsection (1) (a) or subsection (1) (b) would apply”,

and

(e) in subsection (8), by the substitution in paragraph (a) (inserted by the Finance Act, 1973 ) of “Second or Sixth” for “Second, Third, Sixth or Seventh”.