Most of the picturesque clips in this movie--the viaduct, castle etc.--were filmed in the small Yorkshire town of Knaresborough.
The railway used is the North Yorkshire Moors Railway with the station scenes filmed at Pickering, including the scenes that are supposed to be Knaresborough. It's the same railway used in the Harry Potter series of films where Goathland station was used as Hogsmeade hence the brief wizard reference in the dialogue at the station. The scenes of the town Knaresborough are indeed filmed in Knaresborough.
Also airs under the name of *A Very Yorkshire Christmas*
Incredibly, not a single festoon was used in the making of this Christmas movie.
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