Business Brief 36/2014 outlines HMRC’s changed policy on the VAT treatment of Snowballs following the recent decision of the FTT1. The “Snowballs” at issue are of the varieties manufactured by iconic Scottish confectionary companies Lees of Scotland and Thomas Tunnock Ltd (AKA Tunnock’s).

In its decision, the FTT considered and compared a variety of confections, which included the Snowballs, a Mr Kipling Bakewell Tart, Waitrose meringue, as well as former stars of the VAT Tribunal (as it then was) the Jaffa Cake and the Tea Cake before adjudging: “… the plate looked like a plate of cakes.”

Together with this and other delicious findings of fact (“we, and the witness were left with very sticky fingers, which, we explained to parties was not dissimilar to eating a cake such as a vanilla slice (or mille feuille or croquembouche)”), the FTT concluded that a Snowball has sufficient characteristics to be characterized as a cake, and is thus entitled to be zero-rated.

Brief 36/2014 confirms that Snowballs will now be classed as cake by HMRC.

To read the FTT’s decision click here.

To read Brief 36/2014 click here.