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.
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.