The Court of Appeal today confirmed that HMRC are entitled to charge VAT on hot takeaway food. Over 1,200 hot takeaway food outlets stood behind this test case brought by Sub One, part of the Subway franchise. The Court of Appeal dismissed the appeal, finding that the legislative test, which focuses on the purpose for which food has been heated, did not give rise to any lack of certainty or unfairness based on the VAT principle of fiscal neutrality. Permission to bring a fresh challenge to that part of the legislative test which decides whether food is hot by reference to the ambient air temperature was also refused.
Click to view a copy of the judgment in Sub One v HMRC