nidave wrote:I believe its if the product is subject to VAT - luxury goods are.
Yep, and it's surprising to note the kinds of things HMRC consider to be "luxury" goods.
Pet food. Toothpastes and toothbrushes (not wanting to look like Shane McGowan is a "luxury" according to our government). Bog roll (yes, wiping your arse is a "luxury").
And the one which I reckon most people are unaware of is all
soft drinks except milk. That includes water, pure fruit juices and squash. I'd love a politician to explain to me why the government should take 8p out of the 58p price of a litre carton of Tesco Value pure orange juice.
And there's some weird rule that biscuits with chocolate inside them (e.g. cookies) are not luxuries and hence not VATable, but if they're coated in chocolate they're VATable.