Are cereal bars cakes or confectionary?

As readers of my articles will know I frequently attend tax tribunals to observe tax cases – partly for continuing professional development purposes but mainly edification. I find the whole court process thoroughly enlightening and eye opening.

Having worked at Kraft Foods for about 13 years as head of tax and treasury I also find VAT on food interesting. Probably my favourite legislation is VATA 1994 Sch 8 group 1 and the triple negatives found with general items excepted items and items overriding the excepted items. Never was there more convoluted legislation.

Earlier this year I sat through part of the WM Morrison Supermarkets plc (TC8087) appeal. The decision was released in April.

Legislation

The key elements of the legislation in VATA 1994 Sch 8 group 1 were summed up by the judge as follows:

‘Zero rating of goods or service was...