text_body: --- DIVISION TITLE ---
  
  Finance Act - New Clause 5 - Value Added Tax: baked products
  
  --- MOTION EFFECT ---
  
  @ MP voted aye against charging VAT on hot baked goods such as pasties.
  @ MP voted no to charge VAT on hot baked goods such as pasties.
  
  The majority of MPs voted in favour of charging VAT on hot baked goods such as pasties. 
  
  During his budget statement the chancellor George Osbourne MP said[1]
  :We will also address some of the loopholes and anomalies in our VAT system.
  :...
  :Hot takeaway food on high streets has been charged VAT for more than twenty years; but some new hot takeaway products in supermarkets are not.
  
  Paragraph 1.202 of the Budget Document[2] stated:
  :The Government will also close loopholes in the VAT system to prevent avoidance and ensure compliance. From 1 October 2012, VAT will be extended to close loopholes, including by applying it to hairdressersâ chairs (to make clear that their rental is already subject to VAT), static holiday caravans (to bring in line with mobile caravans) and certain hot food (because most hot food is already subject to VAT).
  
  The proposed new clause which was rejected in this vote stated:
  
  :No new Order shall be made under section [http://www.legislation.gov.uk/ukpga/1994/23/section/30 30(4)] or [http://www.legislation.gov.uk/ukpga/1994/23/section/31 31(2)] of the [http://www.legislation.gov.uk/ukpga/1994/23/contents Value Added Tax Act 1994] which shall affect baked products when no attempt is made to keep the product hot for consumption.â
  
  This new clause would have prevented the chancellor from introducing VAT on baked goods, such as pasties, if they were not specifically kept hot for consumption. 
  
  While the government won this vote, subsequently [http://www.legislation.gov.uk/ukpga/2012/14/schedule/26/paragraph/2 Schedule 26 paragraph 2 part 4 of the Finance Act 2012] was added to the Finance Bill to explicitly exclude food left to cool naturally from VAT. 
  
  
  * [1] [http://www.theyworkforyou.com/debates/?id=2012-03-21b.793.0#g799.2 George Osborne MP, (Tatton, Conservative), House of Commons, 21 March 2012] 
  * [2] [http://webarchive.nationalarchives.gov.uk/20130129110402/http://cdn.hm-treasury.gov.uk/budget2012_complete.pdf Budget 2012 - The Budget Document]
  * [3] [http://www.legislation.gov.uk/ukpga/2012/14/schedule/26/paragraph/2 Schedule 26 paragraph 2 part 4 of the Finance Act 2012 Schedule 26 paragraph 2 of the Finance Act 2012]
  * [4] [http://services.parliament.uk/bills/2010-12/financeno4.html Parliament's webpage on the Finance Bill 2012 (Now the Finance Act 2012)]
  --- COMMENTS AND NOTES ---
  
  (put thoughts and notes for other researchers here)
  