WM Morrison Supermarkets PLC v The Commissioners for HMRC
Decision date: 4 March 2024
Neutral citation: [2024] UKFTT 181 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This FTT decision assessed whether 20 fruit-, nut- and oat-based snack bars sold by Morrisons are "confectionery" for VAT purposes. Applying statutory text, prior authorities, dictionary meanings and sensory examination, the tribunal concluded the bars are confectionery (standard-rated) and dismissed Morrisons' appeal.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The tribunal held that "confectionery" is a broad everyday-English concept covering items produced by mixing or compounding that taste sweet (whether from inherent fruit sugars or added sugar) and are normally eaten by hand as small snacks or treats; appearance, texture, mouthfeel, density and taste are the primary indicators. The absence of traditional cake ingredients or the source of sweetness does not prevent classification as confectionery.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal noted that marketing statements and product placement (including promotion as "healthy") are of limited weight and not determinative. It also observed that Note 5 to Group 1 clarifies but does not exclusively define "confectionery" and is not a pure deeming provision.