Apparently, according to conversation in the office today, there has been a lot of discussion in various quarters as to whether Jaffa Cakes are cakes or biscuits. Most people think of them as biscuits.
However, it appears that McVitie’s won a court case at some point or other as they didn’t feel that Jaffa Cakes should be subject to VAT. At present, the VAT laws suggest that cakes and biscuits are essential food items, but chocolate covered biscuits are a luxury item and therefore carry VAT.
McVitie’s won their case saying that Jaffa Cakes are in fact a cake. There proof is that they start off soft and go hard as they deteriorate, as a cake does.
There! A little known fact for a Thursday afternoon.