Pasty tax: What's hot & what's not

Treasury sources are describing the revision to their pasty tax plans as "nice, easy, simple."

Let's look at what hot foods will be subject to VAT and what will escape the 20% tax after the Government climbdown.

Hot food not subject to VAT:

  • Pasties
  • Sausage rolls
  • Anything sold from shelves and being allowed to cool having being cooked

Hot food that will have VAT imposed:

  • Takeaways
  • Pizza
  • Food kept and sold hot