Black Cabs Services Ltd v Revenue & Customs (VAT error correction claim) [2021] UKFTT 191 (TC) (6 May 2021)

Black Cabs Services Ltd v Revenue & Customs (VAT error correction claim) [2021] UKFTT 191 (TC) (6 May 2021)

The tribunal found that the appellant made a separate exempt supply of insurance services in addition to the standard-rated supply of vehicle hire, as drivers had the option to use their own insurance, the cost of insurance was separately identified, and the typical consumer would view the supplies as distinct.

Citation
[2021] UKFTT 191 (TC)
Parties
Appellant: Black Cabs Services Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
06 May 2021
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed
Legal Topics
VAT Exemption, Composite and Multiple Supplies, Insurance Services, Error Correction Claims

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 6 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Black Cabs Services Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

  1. 1 Whether the appellant's supply of insurance with taxi hire constitutes a separate exempt supply or forms part of a single standard-rated supply for VAT purposes.

Ratio Decidendi

The tribunal found that the appellant made a separate exempt supply of insurance services in addition to the standard-rated supply of vehicle hire, as drivers had the option to use their own insurance, the cost of insurance was separately identified, and the typical consumer would view the supplies as distinct.

Court Disposition

Appeal allowed

Orders

  • The appellant's VAT error correction claim is allowed in full.