HS2 in Hansard 16/12/2013

High Speed Two

Lilian Greenwood: To ask the Secretary of State for

Transport whether HS2 Ltd will be able to recover VAT

on its spending; and what recent discussions he has had

with the Chancellor of the Exchequer on this matter.

[179785]

Mr Goodwill: In order to recover VAT incurred on the

costs of constructing the railway, HS2 Ltd will have to

register for VAT. To do so, it will have to satisfy HMRC

that it intends to make taxable supplies, as explained in

paragraph 3.12 of the May 2013 National Audit Office

report. As the NAO also points out in its report, VAT

represents an internal transfer within Government rather

than an additional cost. There have been no recent

discussions with the Chancellor on this matter.

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