Summary

This appeal concerns whether a food product called ‘Mega Marshmallows’ was standard-rated. In 2022, the First-tier Tribunal (FTT) in the decision [2022] UKFTT 352 (TC) determined that the product was not confectionery in the ordinary sense. HMRC appealed to the Upper Tribunal (UT), which dismissed HMRC’s appeal and upheld the decision of the FTT. However, following a further appeal by HMRC, the Court of Appeal (CoA) [2025] EWCA Civ 293 held that the FTT had failed to address the specific issue of whether the product was ‘sweetened prepared food which was normally eaten with the fingers’ and remitted that question to a differently constituted FTT to determine. The parties are agreed that the product is ‘sweetened prepared food’, so the narrow issue in the appeal was whether the product was ‘normally eaten with the fingers’. If it was, then it is standard-rated as HMRC contend; if it is not,