Unfortunately this happens far too often, but the simple fact is - you are 
correct. As you can imagine, with it happening to so many people this has 
been well researched. I came across something a while ago which was a handy 
pocket-sized small leaflet covering the basics of what you can and cannot do 
by law in photography (in relation to photographing in public and private 
property), and exactly what the public and Police can and cannot do to your 
photographs/videos and photographic equipment.

This is what I can remember off the top of my head:

- You must have permission before photographing on private property (not 
including areas which are still public places, such as council owned bus 
stations)
- Public place is fine with no permission required 
(including photographing Police vehicles/officers), unless Police suspect it 
will be used for terrorism
- Owners/employees cannot confiscate equipment or force you to delete items, 
they can only call the Police
- The Police can EITHER confiscate your photographic equipment OR force you 
to delete items (one or the other, can't remember which sorry).

I'm also pretty sure a bus does not count as private property. I'm not sure 
about when you're ON the bus, but it's not when you're outside it like you 
are describing.

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