Tax & Accounting Blog

U.K. Cools on Taxing Hot Pasties

Indirect Tax, ONESOURCE, Transaction Tax May 31, 2012

Those who like to indulge in a traditional pasty for lunch can rest a little easier now. After much controversy following the government’s proposal to tax all hot prepared foods the plan has been modified to exclude these popular snacks which are designed to cool down prior to consumption. The VAT, due to be enforced beginning in October, would have added 50p to a £2.50 sausage roll.

The government still plans to impose VAT on food designed to be eaten warm, for example on rotisserie chickens sold hot by supermarkets.