Commissioners for His Majesty's Revenue and Customs and another (Respondents) v DuelFuel Nutrition Limited (Appellant)

Permission to Appeal application lodged

Case summary
Permission to Appeal
Previous proceedings

Case summary

Case ID

UKSC/2025/0093

Parties

Appellant(s)

DUELFUEL NUTRITION LIMITED

Respondent(s)

THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS

INNOVATIVE BITES LIMITED

Issue

Did the Court of Appeal incorrectly interpret Note 5 to Group 1 of Schedule 8 of Value Added Tax Act 1994 (“VATA 1994”)?

Facts

This appeal concerns the value-added tax (“VAT”) charged on a food product called ‘Mega Marshmallows’, which is sold by IBL (the Second Respondent). The standard rate of VAT charged on goods and services is 20%. However, under VATA 1994, “food of a kind for human consumption” is generally zero-rated (i.e. VAT is charged on it at 0%). But, food which is “confectionery” is an exception to that reduction (i.e. VAT is charged on it at the standard 20% rate). Note 5 to Group 1 of Schedule 8 of VATA 1994 says that “‘confectionery’ includes chocolates, sweets and biscuits; drained, glacé or crystallised fruits; and any item of sweetened prepared food which is normally eaten with the fingers.” HMRC (the First Respondent) assessed Mega Marshmallows as being confectionery under VATA 1994, and therefore being subject to the standard rate of VAT. IBL successfully challenged that decision in the First-tier Tribunal. The Upper Tribunal rejected HMRC’s appeal and upheld the First-tier Tribunal’s decision. The Court of Appeal, however, allowed HMRC’s appeal: Mega Marshmallows were confectionery. In the courts below, the dispute was between HMRC and IBL. IBL has confirmed that it is neutral in the present appeal. DFN (the Appellant in the present appeal) was an intervener in the Court of Appeal, but DFN now appeals the Court of Appeal decision to the UK Supreme Court.