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 Livermore (Labour) on Thursday, 16 July 2026 on behalf of the Treasury.

Climate Change: Taxation

Question: To ask His Majesty's Government what is the annual tax cost of exempting rail operators from the climate change levy on their purchase of electricity.

Answer

Energy supplies used in certain forms of transport are exempt from the main rate of Climate Change Levy (CCL). This includes electricity used to electrify rail lines, light a railway carriage transporting passengers and light the cab interior of a freight train transporting goods.

Information on the estimated cost of tax reliefs, including CCL exemptions, is published on GOV.UK and can be found in the annual statistics on tax reliefs. However, it is not possible to provide the annual tax cost of exempting rail operators from CCL, as HMRC does not collect this information.

Secondary information

Type: Written question
Reference: HL1756
Session: 2026-27
Subjects: Climate change Electricity Exemptions Sales Taxation Train operating companies
Contains statistics: Yes
Link: View this Written question on www.parliament.uk

Climate Change: Taxation

Secondary information

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