Tonight:
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£3.5m legal victory for M&S over VAT cake
Ed Harris4 Feb 2009
MARKS&SPENCER won a 13-year legal battle today over the legal status of its chocolate-covered teacake.
The victory could be worth £3.5million to M&S after three law lords backed a decision by the European Court of Justice which should result in a refund of wrongly paid VAT. The battle centred on whether the confection should be classed as a biscuit and therefore subject to VAT or a cake and be exempt.
Last April the European court ruled it was a cake and ordered the Inland Revenue to make a full refund. It could still have been open to the Revenue to challenge that ruling but today's verdict means it will have to throw in the tea towel.
Reader views (1)
Mr Harris, after reading your last sentence and more importantly, your last couple of words, you have brighten up a very long and painful commute into work. I shall go and buy a chocolate covered teacake now.
- S-M Hearmon, London, UK, 05/02/2009 10:51
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