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Written question asked by Lord Redwood (Conservative) on Tuesday, 7 July 2026, in the House of Lords. It was due for an answer on Tuesday, 21 July 2026. It was answered by Lord Pitt-Watson (Labour) on Tuesday, 28 July 2026 on behalf of the Treasury.


Railways: Fares

Question

To ask His Majesty's Government what is the annual VAT loss from zero-rating rail fares.

Answer

HMRC’s published statistics on the cost of tax reliefs[1] provide an estimate of the cost of the VAT Zero Rate for domestic passenger transport of £5.8 billion in 2025-26. This includes other public transport such as buses; a breakdown for rail fares is not available.

[1] Tax reliefs - GOV.UK


Secondary information

Type
Written question
Reference
HL1755
Session
2026-27
Subjects
Fares Railways VAT
Contains statistics
Yes
Link
View this Written question on www.parliament.uk