Section 21 | Supplies of aircraft etc

(1)Schedule 8 to VATA 1994 (zero-rating) is amended as follows.

(2)In Note (A1) of Group 8 (transport: definition of “qualifying aircraft” etc), for paragraph (b) substitute—

(b)a “qualifying aircraft” is any aircraft which —

(i)is used by an airline operating for reward chiefly on international routes, or

(ii)is used by a State institution and meets the condition in Note (B1).

(3)After that Note insert—

(B1)The condition is that the aircraft—

(a)is of a weight of not less than 8,000 kilograms, and

(b)is neither designed nor adapted for use for recreation or pleasure.

(C1)In Note (A1)(b)—

“airline” means an undertaking which provides services for the carriage by air of passengers or cargo (or both);

“State institution” has the same meaning as in Part B of Annex X to the Council Directive 2006/112/EC on the common system of value added tax (transactions which member States may continue to exempt).

(4)The amendments made by this section have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 January 2011.