This paper presents an active fault-tolerant flight control system (FCS) design for the dual-system/hybrid VTOL UAV configuration that maximally exploits its inherent over-actuation abilities to provide higher levels of fault-tolerance and reliability compared to that of the other VTOL UAVs configurations up to this point. The significance of this study is to convert the main drawback of having the vertical rotors as dead weights during the cruise to a key advantage where all the UAV's controls are kept active during all the flight phases raising the UAV's fault-tolerance and maneuverability abilities. The FCS proposed elaborates on a new architecture for the hierarchical automatic control loops using the dynamic inversion control to design the trajectory tracking virtual commands and employing optimal dynamic control allocation to optimally resolve the controls redundancy. Regarding fault-tolerance, the presented FCS handles simultaneous failures and jamming of all the control surfaces during flight where the control commands to the healthy controls (vertical rotors) were automatically adapted such that the trimming and trajectory tracking were successfully maintained till the mission end. Additionally, this paper addresses for the first time the employment of the controls redundancy to enhance the VTOL UAV's maneuverability in fault-free cases, where we present a study of reducing the minimum turn radius of the UAV when the vertical rotors are employed with the control surfaces during the maneuver. A reduction of 38% in the coordinated steady-level minimum turn radius turn at 35 m/sec flight speed was achieved.