2 Schedule 9 to the Value Added Tax Act 1994 shall be varied by—
(a) substituting for Note (3) of Group 12—

“3 For the purposes of item 2 “qualifying body” means—
(a) any non-profit making body whose objects are of any description mentioned in section 94(3);
(b) any non-profit making organisation mentioned in item 1 of Group 9;
(c) any non-profit making body whose principal purpose is the provision of facilities for persons to take part in sport or physical education; or
(d) any body which is an eligible body for the purposes of item 2 of Group 13.”

; and
(b) adding after Group 12 the following—

“GROUP 13— CULTURAL SERVICES ETC

Item No.
1 The supply by a public body of a right of admission to—
(a) a museum, gallery, art exhibition or zoo; or
(b) a theatrical, musical or choreographic performance of a cultural nature.
2 The supply by an eligible body of a right of admission to—
(a) a museum, gallery, art exhibition or zoo; or
(b) a theatrical, musical or choreographic performance of a cultural nature.
Notes:
1 For the purposes of this Group “public body” means—
(a) a local authority;
(b) a government department within the meaning of section 41(6); or
(c) a non-departmental public body which is listed in the 1995 edition of the publication prepared by the Office of Public Service and known as “Public Bodies”.
2 For the purposes of item 2 “eligible body” means any body (other than a public body) which—
(a) is precluded from distributing, and does not distribute, any profit it makes;
(b) applies any profits made from supplies of a description falling within item 2 to the continuance or improvement of the facilities made available by means of the supplies; and
(c) is managed and administered on a voluntary basis by persons who have no direct or indirect financial interest in its activities.
3 Item 1 does not include any supply the exemption of which would be likely to create distortions of competition such as to place a commercial enterprise carried on by a taxable person at a disadvantage.
4 Item 1(b) includes the supply of a right of admission to a performance only if the performance is provided exclusively by one or more public bodies, one or more eligible bodies or any combination of public bodies and eligible bodies.”

.