In OM Properties Investment Co Ltd v HMRC (TC00752 – 8 November) a company (OM) let several commercial properties to tenants. It had opted to tax the properties but treated part of the payments it received as exempt from VAT. HMRC issued an assessment charging tax on the basis that the supplies failed to qualify for exemption. OM appealed contending that it had a ‘block insurance policy’ and that part of the consideration should be treated as attributable to exempt supplies of insurance applying the principles laid down in Global Self Drive Ltd [2005] VATDR 284 (VTD 19162).
The Tribunal rejected this contention and dismissed the appeal holding that OM’s policy failed to meet the requirements of a ‘block insurance policy’. On the evidence there was no contract between OM and the insurer which allowed OM to ‘effect insurance cover’. OM had not ‘procured...
