The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note explores what is meant by food in the context of the zero-rating for food in VATA 1994, Sch 8, Group 1.
For an overview of the scope of zero-rating for food and the exceptions to this, see the Food ― overview of zero-rating guidance note
In-depth commentary on the legislation and case law surrounding the meaning of food can be found in De Voil Indirect Tax Service V4.217–V4.225.
Food (which includes drink) is very broadly defined for VAT purposes and encompasses all of the following:
food for human consumption
seeds, plants, etc for human or animal food
live animals generally used for making human food
VATA 1994, Sch 8, Group 1, General Items, note 1
These four categories are explored further in this guidance note.
HMRC generally takes the view that an item of food is for human consumption if it meets the following criteria:
an average person would consider that the item is food or drink if they knew what it is and how it is used
the item is fit for human consumption
VAT Notice 701/14, para 2.3
Just because an ingredient is not the kind of thing that someone would eat on its own, provided the ingredient is generally recognised as being a food ingredient, HMRC should accept that it is food for human consumption. For example, recognised food ingredients mi
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.