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Supercar Drive Days v HMRC

In Supercar Drive Days v HMRC [2018] UKFTT 31 (29 January 2018) the FTT found that by making a payment for a collision damage waiver a customer who had purchased a driving experience was not obtaining an exempt supply of insurance (VATA 1994 Sch 9 group 2).

Supercar provided ‘supercar driving experiences’ i.e. track days in expensive high-powered cars. These experiences were sold in the form of vouchers. The issue of the appeal was whether the collision damage waivers it offered to its customers represented exempt supplies of insurance.

The FTT observed that the terms of the contract between Supercar and the buyer of a voucher clearly imposed a liability up to £2 500 but that this liability could be avoided by the participant by paying for the collision damage waiver. The FTT accepted that the practical effect of making the payment for the waiver was similar...

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