The taxpayer is a specialist car leasing company. It carries on the exclusive business of renting or leasing London Hackney cabs (or “London Black Cabs”) to self-employed drivers. The taxpayer had previously accounted for VAT on insurance charges made to drivers and submitted a claim for overpaid VAT. HMRC refused the claim. The issue before the Tribunal is whether there is a separate exempt supply of insurance or a single standard rated supply of taxi vehicle hire.
With the fact pattern so similar to Wheels this is not an unsurprising decision. Whilst reference is made to HMRC trying to distinguish the current case from Wheels there was not much in the way of convincing argument to that effect in the case. (Source KPMG)
Source Bailii
