In WM Morrison Supermarkets plc v HMRC [2023] UKUT 20 (TCC) (23 January 2023) the UT considered an appeal against an FTT decision that certain whole food bars sold by the appellant were ‘confectionery’ and therefore excepted from zero rating in accordance with the excepted items in VATA 1994 Sch 8 Group 1. The UT held that the FTT had made two errors of law in failing to take into account the healthiness of the products and the nature of the ingredients by comparison with traditional confectionery being relevant factors which might have resulted in a different decision.
In 2017/18 Morrison claimed that about £1.1m output tax had been overpaid on various types of ‘Nakd’ raw fruit and nut bars and children's Organix bars. The supermarket said the bars had been wrongly standard rated and should be zero rated. HMRC said the bars were standard rated as...
