Single or multiple supplies - landmark VAT decision

The VAT position on farm diversification is always complicated. In the case of Clearwater Hampers Ltd v Revenue and Customs [2026] UKFTT 567 (TC), the First-tier Tribunal (FTT) ruled that lidded wicker baskets supplied with luxury food and drink hampers were economically ancillary to the food. Consequently, they shared the VAT treatment of the contents and did not attract a separate 20 per cent standard rate. This ruling could prove significant not only for the farm shop, but for other areas of diversified farm activity too.