Schedule 5 | Zero-Rating ^F1

Group 1—Food

The supply of anything comprised in the general items set out below, except—

(a)a supply in the course of catering; and

(b)a supply of anything comprised in any of the excepted items set out below, unless it is also comprised in any of the items overriding the exceptions set out below which relates to that excepted item.

General items

Item No.1. Food of kind used for human consumption.2. Animal feeding stuffs.3. Seeds or other means of propagation of plants comprised in item 1 or 2.4. Live animals of a kind generally used as, or yielding or producing, food for human consumption.

Excepted items

Item No.1. Ice cream, ice lollies, frozen yogurt, water ices and similar frozen products, and prepared mixes and powders for making such products.2. Confectionery, not including cakes or biscuits other than biscuits wholly or partly covered with chocolate or with some product similar in taste and appearance.3. Beverages chargeable with any duty of excise specifically charged on spirits, beer, wine or made-wine and preparations thereof.4. Other beverages (including fruit juices and bottled water) and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages.5. Any of the following when packaged for human consumption without further preparation, namely, potato crisps, potato sticks, potato puffs, and similar products made from the potato, or from potato flour, or from potato starch, and savoury food products obtained by the swelling of cereals or cereal products; and salted or roasted nuts other than nuts in shell.6. Pet foods, canned, packaged or prepared; packaged foods (not being pet foods) for birds other than poultry or game; and biscuits and meal for cats and dogs.7. Goods described in items 1, 2 and 3 of the general items which are canned, bottled, packaged or prepared for use—in the domestic brewing of any beer;in the domestic making of any cider or perry;in the domestic production of any wine or made-wine.^F2F3

Items overriding the exceptions^F4F5

Item No.1. Yogurt unsuitable for immediate consumption when frozen.2. Drained cherries.3. Candied peels.4. Tea, maté, herbal teas and similar products, and preparations and extracts thereof.5. Cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof.5A. Milk and preparations and extracts therof.6. Preparations and extracts of meat, yeast or egg.

Notes:

(1)“Food” includes drink.

(2)“Animal” includes bird, fish, crustacean and mollusc.

(3)A supply of anything in the course of catering includes

(a)any supply of it for consumption on the premises on which it is supplied and

(b)any supply of hot food for consumption off those premises; and for the purpose of paragraph (b) above “hot food”means food which, or any part of which,-

(i)has been heated for the purpose of enabling it to be consumed at a temperature above the ambient air temperature; and

(ii)is at the time of the supply above that temperature.

(4)Item 1 of the items overriding the exceptions relates to item 1 of the excepted items.

(5)Items 2 and 3 of the items overriding the exceptions relate to item 2 of the excepted items , and, for the purposes of item 2 of the excepted items “confectionery" includes chocolates, sweets and biscuits; drained, glacé or crystallized fruits; and any item of sweetened prepared food which is normally eaten with the fingers.

(6)Items 4 to 6 of the items overriding the exceptions relate to item 4 of the excepted items.

(7)Any supply described in this Group shall include a supply of services described in paragraph 1(1) of Schedule 2 to this Act.

Group 2—Sewerage Services and Water

Item No.

(2)The supply, for use otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity, ofwater other than—^F9

(a)distilled water, deionised water and water of similar purity, and

(b)water comprised in any of the excepted items set out in Group 1.Note: “Relevant industrial activity”means any activity described in any of Divisions 1 to 5 of the 1980 edition of the publication prepared by the Central Statistical Office and known as the Standard Industrial Classification.^F10

Group 3—Books, etc.

Item No.1. Books, booklets, brochures, pamphlets and leaflets.2. Newspapers, journals and periodicals.3. Children’s picture books and painting books.4. Music (printed, duplicated or manuscript).5. Maps, charts and topographical plans.6. Covers, cases and other articles supplied with items 1 to 5 and not separately accounted for.

Note: Items 1 to 6—

(a) do not include plans or drawings for industrial, architectural, engineering, commercial or similar purposes; but

(b) include the supply of the services described in paragraph 1(1) of Schedule 2 to this Act in respect of goods comprised in the items.

Group 4—Talking Books for the Blind and Handicapped and Wireless sets for the BlindItem No.

(2)The supply to a charity of—^F11

(a)wireless receiving sets; or^F11

(b)apparatus solely for the making and reproduction of a sound recording on a magnetic tape permanently contained in a cassette,^F11

being goods solely for gratuitous loan to the blind.Note: The supply mentioned in items 1 and 2 includes the letting on hire of goods comprised in the items.

Group 5

Group 6

Group 8—Construction of Dwellings, etc.Item No.^F12

(2)The supply in the course of the construction of—

(a)a building designed as a dwelling or number of dwellings or intended for use solely for a relevant residential purpose or a relevant charitable purpose; or

(b)any civil engineering work necessary for the development of a permanent park for residential caravans,

of any services other than the services of an architect, surveyor or any person acting as consultant or in a supervisory capacity.

Group 8A—Protected Buildings.^F13

Item No.

Group 9—International Services^F14

Item No.

(2)The supply of services consisting of the making of arrangements for—^F14

(a)the export of any goods to a place outside the member States;

(b)a supply of services of the description specified in item 1 of this Group; or

(c)any supply of services which is made outside the member States.

Note: This Group does not include any services of a description specified in Group 2 or Group 5 of Schedule 6 to this Act.

Group 10—Transport

Item No.

(2)The supply, repair or maintenance of any aircraft which is neither—

(a)an aircraft of a weight of less than 8,000 kilogrammes; nor

(b)an aircraft designed or adapted for use for recreation or pleasure.

(12)The supply—^F15

(a)of services consisting of the handling or storage of goods at or their transport to or from a place at which they are to be exported to or have been imported from a place outside the member States or of the handling or storage of such goods in connection with such transport; or^F15

(b)to a person who receives the supply for the purpose of a business carried on by him and who belongs outside the United Kingdom, of services of a description specified in paragraph (a) of item 6, item 9 or paragraph (a) of item 10 of this Group.^F15

(13)The supply of a designated travel service to be enjoyed outside the European Community, to the extent to which the supply is so enjoyed.Notes: 1 In items 1 and 2 the supply of a ship or, as the case my be, aircraft includes the supply of services under a charter of that ship or aircraft except where the services supplied under such a charter consist wholly of any one or more of the following: a transport of passengers, b accommodation, c entertainment, d education,being services wholly performed in the United Kingdom. 2 Items 1, 2 and 3 include the letting on hire of goodsspecified in the items. 2A Item 3 shall not apply unless, before the supply is made, the recipient of the suppply gives to the person making the supply a certificate stating: a the name and address of the recipient, b that the supply is of a description specified in item 3 of this Group. 3 “Lifeboat”means any vessel used or to be used solely for rescue or assistance at sea. 4 Item 6 does not include the letting on hire of goods. 5 “Port” and “customs and excise airport” have the same meanings as in the Customs and Excise Management Act 1979. 6 Except for the purposes of item 12, paragraph (a) of item 6, item 9 and paragraph (a) of item 10 do not include the supply of any services where the ships or aircraft referred to in those paragraphs are of the descriptions specified in paragraphs (a) and (b) of item 1 or in paragraphs (a) and (b) of item 2. 7 “Designated travel service”has the same meaning as in the Value Added Tax (Tour Operators) Order 1987.^{F16F17F18F19F20}

(14)Intra-Community transport services supplied in connection with the transport of goods to or from the Azores or Madeira or between those places, to the extent that the services are treated as supplied in the United Kingdom.^F21

Notes:^{F16F17F18F19F20F22F23}

(1)In items 1 and 2 the supply of a ship or, as the case my be, aircraft includes the supply of services under a charter of that ship or aircraft except where the services supplied under such a charter consist wholly of any one or more of the following:being services wholly performed in the United Kingdom.

(a)transport of passengers,

(b)accommodation,

(c)entertainment,

(d)education,

(2)Items 1, 2 and 3 include the letting on hire of goodsspecified in the items.

(2A)Item 3 shall not apply unless, before the supply is made, the recipient of the suppply gives to the person making the supply a certificate stating:

(a)the name and address of the recipient,

(b)that the supply is of a description specified in item 3 of this Group.

(3)“Lifeboat”means any vessel used or to be used solely for rescue or assistance at sea.

(4)Item 6 does not include the letting on hire of goods.

(5)“Port” and “customs and excise airport” have the same meanings as in the Customs and Excise Management Act 1979.

(6)Except for the purposes of item 12, paragraph (a) of item 6, item 9 and paragraph (a) of item 10 do not include the supply of any services where the ships or aircraft referred to in those paragraphs are of the descriptions specified in paragraphs (a) and (b) of item 1 or in paragraphs (a) and (b) of item 2.

(7)“Designated travel service”has the same meaning as in the Value Added Tax (Tour Operators) Order 1987.

(8)“Intra-Community transport services" means—and, for the purpose of this Note only, the Azores and Madeira shall each be treated as a separate member State.

(a)the intra-Community transport of goods within the meaning of the Value Added Tax (Place of Supply of Services) Order 1992 ;

(b)ancillary transport services within the meaning of the Value Added Tax (Place of Supply of Services) Order 1992 which are provided in connection with the intra-Community transport of goods; or

(c)the making of arrangements for the supply by or to another person of a supply within (a) or (b) above or any other activity which is intended to facilitate the making of such a supply,

Group 11—Caravans and Houseboats

Item No.

(2)Houseboats being boats or other floating decked structures designed or adapted for use solely as places of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.

Group 12—Gold

Item No.

(2)The supply, by a member of the London Gold Market to a Central Bank, of gold held in the United Kingdom.Notes: 1 “Gold” includes gold coins. 2 Section 16(3) of this Act does not apply to goods forming part of a description of supply in this Group. 3 Items 1 and 2 include— a the granting of a right to acquire a quantity of gold; and b any supply described in those items which by virtue of paragraph 1 of Schedule 2 to this Act is a supply of services.

Group 13—Bank Notes

Item No.

Group 14—Drugs, Medicines, Aids for the Handicapped, etc.

Item No.

(10A)The supply to a charity of a service of providing, extending or adapting a bathroom, washroom or lavatory for use by handicapped persons in a residential home where such provision, extension or adaptation is necessary by reason of the condition of the handicapped persons.^F24

(10B)The supply to a charity of a service of providing, extending or adapting a washroom or lavatory for use by handicapped persons in a building, or any part of a building, used principally by a charity for charitable purposes where such provision, extension or adaptation is necessary to facilitate the use of the washroom or lavatory by handicapped persons.^F25

(12A)The sale of a motor vehicle which had been let on hire in the circumstances described in item 12, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.^F26

(13)The supply to a handicapped person of services necessarily performed in the installation of a lift for the purpose of facilitating his movement between floors within his private residence.^F27

(14)The supply to a charity providing a permanent or temporary residence or day-centre for handicapped persons of services necessarily performed in the installation of a lift for the purpose of facilitating the movement of handicapped persons between floors within that building.

(15)The supply of goods in connection with a supply described in item 13 or 14.

(16)The supply to a handicapped person for domestic or his personal use, or to a charity for making available to handicapped persons by sale or otherwise for domestic or their personal use, of an alarm system designed to be capable of operation by a handicapped person, and to enable him to alert directly a specified person or a control centre.

(17)The supply of services necessarily performed by a control centre in receiving and responding to calls from an alarm system specified in item 16.Notes: 1 Section 16(3) of this Act does not apply to goods forming part of a description of supply in item 1, nor to other goods forming part of a description of supply in this Group, except where those other goods are acquired from another member State or imported from a place outside the member States by a handicapped person for domestic or his personal use, or by a charity for making available to handicapped persons, by sale or otherwise, for domestic or their personal use. 2 For the purposes of item 1 a person who is not registered in the visiting EEC practitioners list in the register of medical practitioners at the time he performs services in an urgent case as mentioned in subsection (3) of section 18 of the Medical Act 1983 is to be treated as being registered in that list where he is entitled to be registered in accordance with that section. 3 “Handicapped” means chronically sick or disabled. 4 Item 2 shall not include hearing aids (except hearing aids designed for the auditory training of deaf children), dentures, spectacles and contact lenses but shall be deemed to include— a clothing, footwear and wigs; b invalid wheelchairs, and invalid carriages other than mechanically propelled vehicles intended or adapted for use on roads; and c renal haemodialysis units, oxygen concentrators, artificial respirators and other similar apparatus. 5 The supplies described in items 1 and 2 include supplies of services of letting on hire of the goods respectively comprised in those items. 6 Item 12 applies only- a where the vehicle is unused at the commencement of the period of letting; b where the consideration for the letting consists wholly or partly of sums paid to the lessor by the Department of Social Securityor the Ministry of Defenceon behalf of the lessee in respect of the mobility allowance or mobility supplement to which he is entitled; and c to contracts of hire entered into on or after 1st September 1984. 7 In item 12 “disability living allowance” is a disability living allowance within the meaning of section 71 of the Social Security Contributions and Benefits Act 1992or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;“mobility allowance” is a mobility allowance within the meaning of . . . section 37A of the Social Security (Northern Ireland) Act 1975; and “mobility supplement” is a mobility supplement within the meaning of article 26A of the Naval, Military and Air Forces etc. (Disablement and Death) Service Penions Order 1983 , article 25A of the Personal Injuries (Civilians) Scheme 1983, article 3 of the Motor Vehicles (Exemption from Vehicles Excise Duty) (Northern Ireland) Order 1985. 8 Where in item 3 or 4 the goods are adapted in accordance with that item prior to their supply to the handicapped person or the charity, an apportionment shall be made to determine the supply of services which falls within item 3 or 4. 9 In item 16 or 17, a specified person or control centre is a person or centre who or which a is appointed to receive directly calls activated by an alarm system described in that item, and b retains information about the handicapped person to assist him in the event of illness, injury or similar emergency.^{F28F29F30F31F32F33F34F35F36F37F38F39}

Group 15—Imports, Exports, etc.

Item No.

(2)Repealed^F40

Group 15A—TAX FREE SHOPS^F41F42

Item No.

(1)The supply, by a person in the course of carrying on business in a tax free shop, to a traveller making a relevant journey of goods which are of either of the following descriptions—^F43

(a)goods not included in the first column of the following table which do not exceed a value of £71 in aggregate and which are to be carried in the traveller’s personal luggage; or^F43

(b)goods included in the first column of the following table which do not exceed the quantities set out in the second column of that table and are to be carried in the traveller’s personal luggage.^F43

(2)The supply, of any goods within Item 1(a) or (b) above, to a traveller on board an aircraft or ship making a relevant journey by a person who supplies the traveller’s air or sea transport or any other person authorised by that person.^F44

(1)For the purpose of determining the aggregate value of any goods referred to in Item 1(a) only the whole of the value of any item, or group of items which are normally sold as a set or collection, may be included in the aggregate value of £71.^F45

(2)“tax free shop" means any shop which is situated within an airport, port or Channel Tunnel terminal and which is approved by the Commissioners for the supply of goods for the purposes of this Group and in this note “Channel Tunnel terminal" means the area situated in the vicinity of Cheriton, Folkestone referred to in section 1(7)(b) of the Channel Tunnel Act 1987 .^F46

(3)“relevant journey" means a journey by air or sea from the United Kingdom to a place in another member State where the traveller is to disembark and includes, for the purposes of Item 1, a journey by a Channel Tunnel shuttle train.

(4)“traveller" means any passenger travelling under a transport document for air or sea travel stating that the immediate destination is a place in another member State (including such a transport document stating that the final destination is a place outside the member States) or for shuttle train travel.

(5)Items 1 and 2 do not apply where the supply is to a traveller under 17 years of age of goods falling within Item 1(b), other than perfumes and toilet waters.

(6)In these Notes “shuttle train" has the meaning given in section 1(9) of the Channel Tunnel Act 1987.

Group 16—Charities, etc.

Item No.

(2)The donation of any goods for sale or export by a charity described in item 1 { or by a taxable person described in that item}^F47F48

Group 17—Clothing and Footwear

Item No.

(2)The supply to a person for use otherwise than by employees of his ofprotective boots and helmets for industrial use.^F49