Law Weblog

After 13 years it may all be over, a tea-cake is not a biscuit

Wednesday 4 February 2009 at 9:19 pm | In News | 2 Comments Marks and Spencer’s battle over the status of a teacake is over.

Three law lords backed a decision by the European Court of Justice and M&S should get back millions of VAT they wrongly paid. The battle centred on whether the teacake is a biscuit and therefore be subject to VAT or a cake and be exempt.

The Revenue will not challenge the ECJ ruling and today’s decision means it has thrown in the tea towel.

Any law student could have told M&S, the Inland Revenue, the ECJ or the HofL that a cake goes hard if left out, a biscuit goes soft, so why did it take the best legal minds in the world 13 years to work that out? Another clue is its name, tea “cake”.

http://www.publications.parliament.uk/pa/ld200809/ldjudgmt/jd090203/marks.htm