Philip Simpson, Q.C., successfully appeared for the taxpayer in the recent case of Character World Limited v. HMRC. It concerned whether slankets (items made out of fleece material, in the shape of blankets but having sleeves) attracted zero-rating on the basis that they were clothing designed for young children. It was agreed between the parties that the size made them suitable for young children (as did the design, which was of various well-known cartoon and other characters). The question was whether they were ‘designed as clothing’). The First-tier Tribunal agreed that slankets were designed to be worn, and accordingly that they were to be zero-rated.
A copy of the judgment can be seen here.