Finance Act, 1996

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

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

(a) in subsection (1) (inserted by the Act of 1992) by the substitution in paragraph (f) of “2.8 per cent.” for “2.5 per cent.” (inserted by the Act of 1993), and

(b) by the insertion of the following subsection after subsection (1AA):

“(1AB) Notwithstanding subsection (1), the rate at which tax is chargeable on a supply of contract work shall be the rate that would be chargeable if that supply of services were a supply of the goods being handed over by the contractor to the person to whom that supply is made:

Provided that this subsection shall not apply to a supply of contract work in the circumstances specified in paragraph (xvi) of the Second Schedule.”.