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High Court Orders Morrisons to Pay £17M VAT on Hot Chickens

12/16/2025

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Summary

Story summary

The High Court orders Morrisons to pay £17 million VAT for rotisserie chickens sold hot at the 20% rate.
The decision follows the 2012 "pasty tax" changes taxing hot takeaway foods.
Morrisons argued most customers eat the chickens cold or reheat them.
The court found the chickens were sold in heat-retaining bags and removed after two hours.
HM Revenue and Customs (HMRC) had not clearly communicated guidelines during the period.

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Story summary

The High Court orders Morrisons to pay £17 million VAT for rotisserie chickens sold hot at the 20% rate.
The decision follows the 2012 "pasty tax" changes taxing hot takeaway foods.
Morrisons argued most customers eat the chickens cold or reheat them.
The court found the chickens were sold in heat-retaining bags and removed after two hours.
HM Revenue and Customs (HMRC) had not clearly communicated guidelines during the period.