Written Question·Treasury·UIN HL1755

Railways: Fares

Tabled: 7 July 2026
Answered: 28 July 2026

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...
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