JD Wetherspoon PLC v The Commissioners for HMRC

JD Wetherspoon PLC v The Commissioners for HMRC

Although the language of the definition of 'alcoholic beverage' in Group 14 did not include cider, the Tribunal found that the conditions for applying the Inco principle were satisfied: the legislative purpose was to exclude all alcoholic beverages, including cider, from the reduced rate, and the omission was an inadvertent drafting error. Therefore, cider should be read into the definition, and the appeal was dismissed. Even if the Inco principle had not applied, EU law and the principle of fiscal neutrality would require a conforming interpretation to the same effect.

Parties
Appellant: JD Wetherspoon PLC; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
06 September 2025
Procedural Posture
Tax Appeal / Preliminary Issue Determination Before First Tier Tribunal (tax Chamber)
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Reduced Rate Application, Alcoholic Beverages Definition, Statutory Construction, EU Fiscal Neutrality, Conforming Interpretation
Tax Law Statutory Interpretation European Union Law Value Added Tax Reduced Rate Application Alcoholic Beverages Definition Statutory Construction EU Fiscal Neutrality +1 more

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Parties

JD Wetherspoon PLC

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Preliminary Issue Determination Before First Tier Tribunal (tax Chamber)

Legal Issues

  1. 1 Whether cider fell within the exclusion from the reduced rate of alcoholic beverages in Group 14 of Schedule 7A to the Value Added Tax Act 1994 during the relevant period
  2. 2 Whether the Inco principle for correcting obvious errors in legislation applies to insert cider into the definition
  3. 3 Whether, if the Inco principle did not apply, the exclusion of cider from the definition was in accordance with EU law, specifically paragraph (12a) of Annex III of Directive 2006/112/EC and the principle of fiscal neutrality

Ratio Decidendi

Although the language of the definition of 'alcoholic beverage' in Group 14 did not include cider, the Tribunal found that the conditions for applying the Inco principle were satisfied: the legislative purpose was to exclude all alcoholic beverages, including cider, from the reduced rate, and the omission was an inadvertent drafting error. Therefore, cider should be read into the definition, and the appeal was dismissed. Even if the Inco principle had not applied, EU law and the principle of fiscal neutrality would require a conforming interpretation to the same effect.

Court Disposition

Appeal dismissed

Orders

  • The definition of 'alcoholic beverage' in Group 14 of Schedule 7A to the Value Added Tax Act 1994 is to be read as including cider for the relevant period.
  • The Appellant's claim for repayment of VAT on supplies of cider at the reduced rate is rejected.