§ Mr. AllasonTo ask the Chancellor of the Exchequer what plans he has to extend value added tax to steam railways.
§ Mr. Heathcoat-AmoryI have no plans to disturb the current VAT zero rating for public passenger transport, including steam railways, where the service is confined to that of public transport in its widely accepted sense. I can confirm that the proposed restrictions to the zero rating under the VAT (Transport) Order 1994 will not normally affect steam railways, and therefore most operators will be able to continue to apply the zero rate. The exception is when payment for admission to places such as theme or safari parks or working museums includes a steam engine ride. In these cases, where admission charges are apportioned or zero rated at present, they will become wholly liable to VAT at the standard rate.