top of page

Character World Limited v HMRC

VALUE ADDED TAX – zero rating – clothing for young children – sleeved fleece – whether designed as clothing – appeal allowed

Read Full Decision:

The appellant had numbers licences to design, manufacture and sell products incorporating images of characters from popular movie, TV show, gaming and music brands. The product relevant to this appeal is the “sleeved fleece” available in a range of printed designs with different children’s characters.

Group 16 Schedule 8 Value Added Tax Act 1994 (“VATA 1994”) has the effect of zero-rating a supply of goods which are articles designed as clothing for young children and not suitable for older people.

The respondents took the position that the Product is not “designed as clothing” and therefore any supply of the Product is standard rated for VAT purposes.

The appeal was allowed. 


Commenting has been turned off.
bottom of page