barrel just recently commemorated its 50th birthday in the UK. Over the years it’s definitely become an excellent monster — generating almost £160bn in the year to March and accounting for approximately one in every 6 pounds we pay in tax.
However, it’s barely a reasonable and fully grown tax. The truth it has its origins in the 1940 purchase tax suggests there’s a heavy focus on dismissing anything thought about slightly glamorous or inefficient and, as an outcome, we’re entrusted a series of strange and antiquated guidelines.
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So to commemorate the 50th anniversary of the tax, here are 12 of the oddest.
Popcorn
Popcorn is taxed at 20% barrel while microwavable popcorn is taxed at 0%.
This is since the law particularly specifies that anything that’s expanded is unnecessarily glamorous.
Chocolate biscuits
Biscuits that have the chocolate chips pushed into the dough, face 0% BARREL, while chocolate-covered biscuits are taxed at 20%. This is since the guidelines particularly describe the covering as taxable.
Gingerbread guys
Gingerbread guys with chocolate eyes are barrel complimentary however those with a chocolate belt are taxed at 20%.
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Essentially any elegant chocolate decors covering more than 1% of the surface area are thought about a high-end and for that reason based on barrel.
Cakes
Cake is thought about part of the basic needs of life, so cakes aren’t taxed — even when covered in chocolate.
This resulted in the well-known case of the Jaffa Cake, which was ultimately ruled to be a cake and for that reason zero-rated, mainly since it goes hard when stagnant — like a cake, and not soft — like a biscuit.
Flapjack
You don’t pay barrel on the flapjack you purchase in the vending device in the passage at work (since it’s thought about to be a cake you remove and consume in other places), however you pay 20% on the one from the device in the canteen (since it’s presumed to be part of the catering).
Crisps
Potato crisps are taxed at 20%, however there’s no barrel on crispy snacks made from other things like tortilla chips or twiglets.
Dried fruit and nuts
Dried fruit or nuts offered in the pastry shop aisle are tax-free cooking active ingredients. Those offered with snacks or confectionary are taxed at 20%.
Pasties
If a pasty is prepared and left in a cabinet to cool off, then it can be offered while it’s still warm without tax.
However, if it’s prepared it to purchase, offered as ‘hot’, the cabinet is warmed, or it is put it in a foil-lined bag, it’s taxed at 20%.
Pets
If you purchase a gerbil in a family pet shop you’ll pay tax on it. If you purchase a bunny, you’ll pay no tax on it, since the taxman classes bunnies as food.
Tips
If a service fee is consisted of on an expense there’s 20% tax on it, whereas a suggestion that’s easily offered is tax complimentary.
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