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Original Article HERE
Basic foodstuffs are exempt in Britain. But the definition of basic foodstuff led to a mammoth court case between the Government and McVities, the maker of Jaffa Cakes, a popular chocolate-covered sponge biscuit.
Chocolate biscuits are defined as luxury items, so liable to the tax, while cakes are basic foodstuffs and zero-rated. McVities argued that a Jaffa Cake is just that.
The famous case ended up centring on how Jaffa Cakes aged. The firm argued that a biscuit was hard when fresh and soft when stale. Jaffa Cakes, in contrast, went from soft to hard. The company won.
And from HERE
McVities baked a huge 12" jaffa cake to prove it was a cake, and showed it went stale like a cake not a biscuit.