Richard Burden – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Richard Burden on 2014-05-02.

To ask Mr Chancellor of the Exchequer, whether the Highways Agency will be able to recover VAT in the same way as it can as an executive agency of his Department when it is transformed into a government-owned company.

Mr David Gauke

Special provisions apply to Government Departments and health authorities that enable them to recover VAT incurred on certain of their non-business activities. These are set out in section 41(3) of the VAT Act 1994.

New bodies are not automatically covered by the above provisions, but the Treasury keeps all taxes under review.