Lidded Wicker Baskets Ancillary to Food and Drink Hampers for VAT, FTT Rules

The FTT ruled that lidded wicker baskets in Clearwater Hampers’ gift hampers are ancillary to the supply of food and drink, not a separate supply for VAT purposes.
The value of the lidded basket should not be factored separately into the VAT calculation; only the food and drink items’ values are relevant.
The decision was based on the finding that the basket is not an end in itself for customers but a means of better enjoying the food and drink.
The appeal by Clearwater Hampers was allowed, and the composite VAT rate should be based solely on the food and drink contents.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.