Railways: Fares
2026-07-06 · Treasury · HL1755 · Official question
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 n...