Is a Jaffa Cake a cake or a biscuit?
A Jaffa Cake is legally a cake in the United Kingdom. In 1991, a tax tribunal ruled that Jaffa Cakes are cakes, not chocolate-covered biscuits, which meant they were not subject to value added tax.
Jaffa Cakes were introduced by McVitie's in 1927. They have a sponge base, a layer of orange jelly and a coating of dark chocolate.
The name comes from Jaffa oranges, a variety grown in the Middle East.
The famous tax case
In the UK, most food is exempt from VAT, but chocolate-covered biscuits are taxed. Cakes are not. Tax officials argued that Jaffa Cakes were biscuits.
McVitie's argued that they were cakes. As evidence, the company baked a giant Jaffa Cake and pointed out that cakes go hard when stale, while biscuits go soft. Jaffa Cakes go hard when stale.
The tribunal agreed that Jaffa Cakes have the characteristics of cakes. The debate continues as a light-hearted argument in British culture.
Jaffa Cakes are usually sold in the biscuit section of supermarkets, adding to the confusion.
They are usually sold in packs of 10 or more.