4.  In article 10—

(a) for the cross-heading and for paragraph (1) there shall be substituted the following:

• “Tax chargeable on certain designated travel services

  10.— (1) The application of the Value Added Tax Act 1983 shall, in relation to those supplies made by a tour operator, which are described in the following paragraphs, be modified in accordance with those paragraphs.

  (1A) Where a tour operator acquires certain services, that is to say transport of passengers—

  (a) within or outside the United Kingdom—

  (i) in any vehicle, ship or aircraft designed or adapted to carry not less than twelve passengers, or

  (ii) on any scheduled flight, or

  (b) from a place within to a place outside the United Kingdom or vice versa

  in order to supply them as a designated travel service or as part of such a service, the rate at which tax shall be charged shall be nil on that portion of the value of the designated travel service supplied which is attributable to those services.”;

  (b)

  in paragraph (2) before “Schedule 6” there shall be inserted “Group 6 of”.