Thorncroft Ltd v Revenue & Customs [2011] UKFTT 694 (TC) (01 November 2011)

Thorncroft Ltd v Revenue & Customs [2011] UKFTT 694 (TC) (01 November 2011)

The Tribunal held that Thorncroft's iced tea concentrate drinks are teas within the meaning of Item 4 of the Items Overriding the Exceptions in Group 1 of Schedule 8 of the VAT Act 1994. The drinks are made primarily from tea (or herbal infusions), with sugar as an additive, and are marketed, presented, and consumed as teas. The addition of sugar and minor flavourings does not transform the product into a soft drink or syrup for VAT purposes. Therefore, the products are zero-rated for VAT.

Citation
[2011] UKFTT 694
Parties
Appellant: Thorncroft Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
01 November 2011
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
VAT Zero Rating, Classification of Beverages, Interpretation of Schedule 8 VAT Act 1994
Tax Law VAT Zero Rating Classification of Beverages Interpretation of Schedule 8 VAT Act 1994

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Thorncroft Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether Thorncroft's iced tea concentrate drinks are zero-rated as 'tea, mate, herbal teas and similar products' under Schedule 8 Group 1 Item 4 of the VAT Act 1994 or standard-rated as 'other beverages' or 'syrups, concentrates' under the exceptions.

Ratio Decidendi

The Tribunal held that Thorncroft's iced tea concentrate drinks are teas within the meaning of Item 4 of the Items Overriding the Exceptions in Group 1 of Schedule 8 of the VAT Act 1994. The drinks are made primarily from tea (or herbal infusions), with sugar as an additive, and are marketed, presented, and consumed as teas. The addition of sugar and minor flavourings does not transform the product into a soft drink or syrup for VAT purposes. Therefore, the products are zero-rated for VAT.

Court Disposition

Appeal allowed

Orders

  • The decision of the Commissioners is set aside. The iced tea concentrate drinks are zero-rated for VAT purposes.