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Morrisons Faces £17m Bill over Rotisserie Chicken Row
Tribunal found Morrisons did not disclose heat retention and packaging details, resulting in a £17 million VAT bill on rotisserie chickens at the 20% standard rate.
- A tribunal decision last week found Morrisons must pay a £17 million tax bill, with its rotisserie chickens subject to the standard 20% VAT rate.
- George Osborne's 2012 VAT change clarified tax on hot baked goods, later prompting a partial climbdown exempting items returning to ambient temperature, shaping current policy.
- Tribunal judge Mark Baldwin said Morrisons failed to disclose heat and grease/fluid retention in chicken paper bags and the two-hour removal practice with chickens above ambient temperature.
- Morrisons has faced financial strain since the £7 billion takeover by Clayton, Dubilier & Rice in 2021, and the Bradford‑based headquarters on Gain Lane in Thornbury must now absorb the ruling.
- The tribunal noted HM Revenue & Customs had not provided explicit guidance on rotisserie chickens, highlighting the heated‑cabinet versus `incidentally hot` exemption distinction under revised VAT rules last week.
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Rother Radio - Rotherham & Sheffield's Best Variety of Hits!Morrisons faces £17m tax bill after losing legal bid over rotisserie chickens
Morrisons faces £17m tax bill after losing legal bid over rotisserie chickens Morrisons faces a £17 million tax bill after losing a legal challenge over whether VAT should be charged on its rotisserie chickens.
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Total News Sources21
Leaning Left0Leaning Right3Center5Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
C 63%
R 37%
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