Tax Collection and Management (Wales) Act 2016

[^key-e748f117db69ee7d8986ce645350d0ce]: S. 84A inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 19

[^key-e78e749852ef3e1f32d3655b5148ccf1]: S. 50 in force at 1.4.2018 by S.I. 2018/33, art. 3

[^key-e83dab42959c83acc7dab21223a27dc5]: Word in s. 38(2) substituted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 5(b)(i); S.I. 2018/34, art. 3

[^key-e918d2ff370fcb4a08e879035e775f76]: Word in s. 118 heading inserted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 39(a)

[^key-e95b6cc676f9abfdaf9ee7957fde04ea]: S. 20 in force at 18.10.2017 by S.I. 2017/954, art. 2

[^key-ea722eb60958cfe11b9f0751581f54a3]: S. 102 in force at 25.1.2018 by S.I. 2018/33, art. 2(c)

[^key-eaf166208e122791c5326d47fa100dc4]: S. 38(6) omitted (1.4.2018) by virtue of Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 5(f); S.I. 2018/34, art. 3

[^key-ebbe8e331c2d5fd59218ccf683ab7a95]: S. 97 in force at 25.1.2018 by S.I. 2018/33, art. 2(c)

[^key-ed8724af341547985d8c95eb46b8dc4f]: S. 69(3)(4) in force at 18.10.2017 by S.I. 2017/954, art. 2

[^key-edb49015fffec7a083ffada7cf560bc9]: S. 121 in force at 1.4.2018 by S.I. 2018/33, art. 3

[^key-eea6ee7f4f21b186bdc6e4b5b905781c]: Words in s. 58(4) inserted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 18(d)(i); S.I. 2018/34, art. 3

[^key-ef0939e19c50735c4f537535ec1808a3]: Words in s. 127(5) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 47(b)

[^key-ef1bf3661db818048948760d9e0553b6]: Words in s. 59(7) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 16(6)(b)

[^key-ef2ebfd26af772acae53308920f19846]: S. 157B inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 37

[^key-f092f394b960e6aff8aa7e4d7d84fbc9]: Words in s. 120(2) substituted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 41(b); S.I. 2018/34, art. 3

[^key-f0c89f146c3525b0fb60fcdb85d20f99]: S. 180 in force at 25.1.2018 by S.I. 2018/33, art. 2(i)

[^key-f165f45cb31b20f3b81f9283735ce0fc]: Words in s. 190(1) substituted (25.1.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 68(a); S.I. 2018/34, art. 2(b)(v)

[^key-f1d6c423c2e2bfe33e7ef37a942912f0]: Words in s. 25(1) inserted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 26(a)

[^key-f239bad065fcbdeae3f9ad794656f705]: Words in s. 45(5) substituted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 13(b); S.I. 2018/34, art. 3

[^key-f25851c355350aa071ec3c62930a307c]: S. 15 in force at 18.10.2017 by S.I. 2017/954, art. 2

[^key-f2c09c66d8f8be8ed52885b0c03ddcca]: Words in s. 67(11) omitted (31.12.2020) by virtue of The Welsh Tax Acts (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/833), regs. 1(2), 5(4)(a); 2020 c. 1, Sch. 5 para. 1(1)

[^key-f3589dee213759ae308ab802ed3715e5]: Words in s. 193 inserted (25.1.2018) by Landfill Disposals Tax (Wales) Act 2017 (anaw 3), s. 97(2), Sch. 4 para. 20; S.I. 2018/35, art. 2(z)(iii)

[^key-f39ceb3802bb5da615c890c17047c9f5]: Words in s. 135(1) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 32(2)

[^key-f422af0979e3e1b1ed693b450c781671]: S. 38(7) omitted (1.4.2018) by virtue of Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 5(f); S.I. 2018/34, art. 3

[^key-f4563e1d64707465c6ecabeaf4b1bada]: Word in s. 120 heading inserted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 41(a)

[^key-f47410e62526aebdc062da7952a608c6]: S. 57 in force at 1.4.2018 by S.I. 2018/33, art. 3

[^key-f47f8cf874b7ca577c20ad191c1387a0]: S. 182 in force at 25.1.2018 by S.I. 2018/33, art. 2(i)

[^key-f4f7bb8002f782e05ee6524612eb4a9c]: Words in s. 122(3) Table A1 substituted (1.4.2024) by The Landfill Disposals Tax (Tax Rates) (Amendment) and Tax Collection and Management (Wales) Act 2016 (Miscellaneous Amendments) (Wales) Regulations 2024 (S.I. 2024/367), regs. 1, 5

[^key-f66dab17dcf5bef11e42cfc2ec87e872]: S. 128(4A) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 28(4)

[^key-f6ab66a303c9b31a45848a400885e769]: S. 38(1)(b) substituted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 5(a)(ii); S.I. 2018/34, art. 3

[^key-f6b2a35433b80d74613cc804299613ac]: S. 172 in force at 25.1.2018 by S.I. 2018/33, art. 2(i)

[^key-f6b89d2a9e37ff1f96ab7d6ff9e2018d]: Words in s. 52(5) substituted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 16; S.I. 2018/34, art. 3

[^key-f7609744637bf09200bd2d09169f34df]: S. 38(5) substituted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 5(e); S.I. 2018/34, art. 3

[^key-f7e9c78565f7f4ace186918c90398dcc]: Word in s. 161(2) omitted (1.4.2018) by virtue of The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 40(2)(a)

[^key-f840f572149acf46de283493b2d7fb08]: Words in s. 161(4)(b) substituted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 40(3)

[^key-f8d6db79402a0a931c045ecfa54ad0c8]: S. 122(2) substituted (1.4.2018) by Landfill Disposals Tax (Wales) Act 2017 (anaw 3), ss. 75, 97(2); S.I. 2018/35, art. 3

[^key-f9721b1e4740a89ea0e0103e2ef1330e]: Word in s. 81D omitted (1.4.2018) by virtue of The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 17(a)

[^key-f97df1c91dbd3f35e44cd9a70f03dab3]: S. 125 in force at 1.4.2018 by S.I. 2018/33, art. 3

[^key-f9a379234364804897f7a25e82763c45]: S. 132(2)(d) and word inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 30(b)

[^key-fa099a3c10aa01e255b66510205440d1]: S. 30 in force at 1.4.2018 by S.I. 2018/33, art. 3

[^key-fc58ca74ecb146febb5c958304a18e0d]: S. 181J inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 45

[^key-fd76a8ab18d39f06eb56b59690ba319f]: Word in s. 129(2) omitted (1.4.2018) by virtue of The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 29(a)

[^key-fd91f408c1c70a19a3bd27cf39231298]: S. 23 in force at 18.10.2017 by S.I. 2017/954, art. 2

[^key-ff2888fb594687a6b9133c16448b6ce8]: S. 17 in force at 18.10.2017 by S.I. 2017/954, art. 2

[^key-fff3af6ed431e746ec4d55fe1114ea14]: Word in Act substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 21

39A

The Welsh Ministers may by regulations provide that the records required to be kept and preserved under this Chapter do, or do not, include records of a description prescribed by the regulations.

103A

• (1) If WRA has grounds for believing that the following conditions are met, WRA may enter a person's business premises and inspect—

• (a) the premises;

• (b) business assets that are on the premises;

• (c) relevant business documents that are on the premises (but see section 110).

• (2) The first condition is that the person is or has been involved in any capacity with a disposal of material that is or may be a taxable disposal.

• (3) The second condition is that the inspection of the premises is required for the purpose of checking the position of another person as regards landfill disposals tax in respect of the disposal concerned.

• (4) Subsections (2) to (7) of section 103 apply in respect of an inspection under this section as they apply in respect of an inspection under section 103(1).

• (5) In this section, “relevant business documents” means business documents that relate to matters relevant to the position of a person as regards landfill disposals tax.

• (6) The circumstances in which WRA is to be treated as having grounds for believing that the first condition is met include (for example) circumstances where WRA has grounds for believing that the person⁠—

• (a) is, or has been, involved in any capacity with receiving, transporting or supplying any material for purposes connected with or preparatory to a disposal of material that is or may be a taxable disposal, or

• (b) is, or has been, involved in any capacity in subjecting any material to any procedure or use, or otherwise in dealing with or making arrangements in respect of any material, for purposes connected with or preparatory to a disposal of material that is or may be a taxable disposal.

• (7) An inspection of premises is not to be carried out under this section if WRA has the power to carry out the inspection under section 103B.

• (8) In this section—

• (a) references to a disposal of material include the carrying out of a specified landfill site activity in relation to material;

• (b) “material”, “specified landfill site activity” and “taxable disposal” have the same meanings as in LDTA.

103B

• (1) This section applies if WRA has grounds for believing—

• (a) that a disposal of material that is or may be a taxable disposal has been made at a place that is not, and does not form part of, an authorised landfill site, and

• (b) that the inspection of premises within subsection (3) is required for one or more of the purposes listed in subsection (4).

• (2) WRA may enter the premises and inspect—

• (a) the premises, and

• (b) anything on the premises (including documents).

• (3) Premises are within this subsection if WRA has reason to believe that⁠—

• (a) the disposal was made at them, or

• (b) the occupier of the premises meets, or may meet, the charging condition in respect of the disposal.

• (4) The purposes are—

• (a) determining whether the disposal was made at the premises;

• (b) identifying the nature or origin of the material disposed of;

• (c) identifying the date on which the disposal was made;

• (d) determining whether the disposal is a taxable disposal;

• (e) determining the weight of the material disposed of;

• (f) determining the amount of any proposed charge to tax under LDTA on the disposal;

• (g) identifying a person who meets, or may meet, the charging condition in respect of the disposal.

• (5) Subsections (2) to (7) of section 103 apply in respect of an inspection under this section as they apply in respect of an inspection under section 103(1).

• (6) In this section—

• (a) “authorised landfill site”, “material” and “taxable disposal” have the same meanings as in LDTA;

• (b) references to a person meeting the charging condition have the same meaning as in Chapter 2 of Part 4 of LDTA.

154A

• (1) If a person liable to a penalty (““P””) has died, any penalty that could have been assessed on P may be assessed on the personal representatives of P.

• (2) Any penalty assessed accordingly is to be paid out of P's estate.

157A

• (1) This section applies to an amount of penalty relating to WRA-collected tax.

• (2) If the amount is not paid on or before the date by which it is required to be paid, the amount carries interest (referred to in this Part as “"late payment interest””) at the late payment interest rate for the period—

• (a) beginning with the following day, and

• (b) ending with the date of payment.

• (3) But where section 160 applies, the late payment interest start date is the date specified in that section.

The Welsh Revenue Authority

38A

• (1) This section applies in relation to a land transaction, other than a transaction of a type listed in section 65(4) of LTTA, in respect of which no tax return is required to be made.

• (2) The buyer in a land transaction in relation to which this section applies must—

• (a) keep any records that may be needed to enable the buyer to demonstrate that no tax return is required to be made, and

• (b) preserve any records that may be needed for that purpose.

• (3) The records must be preserved until the end of the relevant date.

• (4) The ““relevant date”” is the sixth anniversary of the effective date of the transaction.

• (5) But if WRA specifies an earlier date under this subsection, the ““relevant date”” is the date specified.

• (6) Different dates may be specified for different purposes under subsection (5).

• (7) In subsection (4), “"effective date”” has the same meaning as in LTTA.

45A

• (1) This section applies if a person who has made a tax return amends it during the period when an enquiry into the return is in progress.

• (2) For the purposes of section 44 (scope of enquiry), the amendment is to be treated as something contained in the tax return.

• (3) The amendment takes effect on the day on which the enquiry is completed unless WRA states in the closure notice issued under section 50 that—

• (a) the amendment has been taken into account in formulating the amendments required to give effect to WRA's conclusions, or

• (b) WRA's conclusion is that the amendment is incorrect.

55A

If WRA comes to the view that—

• (a) an amount of tax credit that has been set off against an amount of tax that a person would otherwise have been required to pay—

• (i) ought not to have been set off, or

• (ii) has become excessive,

• (b) an amount that has been paid to a person in respect of a tax credit—

• (i) ought not to have been paid, or

• (ii) has become excessive, or

• (c) an amount that a person is required to pay to WRA in respect of a tax credit has not been paid,

WRA may make an assessment of the amount that ought in its opinion to be paid to WRA in order to remedy that matter.

PART 3A — GENERAL ANTI-AVOIDANCE RULE : DEVOLVED TAXES

Overview

81A

• (1) This Part makes provision , relating to devolved taxes, for counteracting tax advantages arising from artificial tax avoidance arrangements, including provision—

• (a) about the meaning of ““tax avoidance arrangement””, ““artificial”” and ““tax advantage”” (sections 81B to 81D);

• (b) about WRA's power to make adjustments to counteract tax advantages and the steps to be taken by WRA in connection with such adjustments (sections 81E to 81G).

• (2) The rules in this Part are collectively to be known as “"the general anti-avoidance rule””.

Artificial tax avoidance arrangements

81B

• (1) For the purposes of this Part, an arrangement is a ““tax avoidance arrangement”” if the obtaining of a tax advantage for any person is the main purpose, or one of the main purposes, of a devolved taxpayer entering into the arrangement.

• (2) In determining whether the main purpose, or one of the main purposes, of an arrangement is the obtaining of a tax advantage regard may in particular be had to the amount of devolved tax that would have been chargeable in the absence of the arrangement.

• (3) In this Part—

• (a) an “"arrangement”” includes any transaction, scheme, action, operation, agreement, grant, understanding, promise, undertaking, event or any series of any of those things (whether legally enforceable or not);

• (b) references to an arrangement are to be read as including—

• (i) a series of arrangements, and

• (ii) any part or stage of an arrangement comprised of more than one part or stage;

• (c) “"devolved taxpayer”” means a person liable to devolved tax or who would be liable but for the tax avoidance arrangement in question.

81C

• (1) For the purposes of this Part, a tax avoidance arrangement is ““artificial”” if the entering into or carrying out of it is not a reasonable course of action in relation to the provisions of Welsh tax legislation applying to the arrangements.

• (2) In determining whether the tax avoidance arrangement is artificial, regard may in particular be had—

• (a) to any genuine economic or commercial substance to the arrangement (other than the obtaining of a tax advantage);

• (b) as to whether the arrangement results in an amount of tax chargeable that it is reasonable to assume was not the anticipated result when the relevant provision of Welsh tax legislation was enacted.

• (3) But an arrangement is not artificial if, at the time it was entered into or carried out—

• (a) the arrangement was consistent with generally prevailing practice, and

• (b) WRA had indicated its acceptance of that practice.

• (4) Where a tax avoidance arrangement forms part of any other arrangements, regard must also be had to those other arrangements in determining whether the tax avoidance arrangement is artificial.

• (5) In this section, “"Welsh tax legislation”” means—

• (a) the Welsh Tax Acts, and

• (b) any subordinate legislation (within the meaning of section 21 of the Interpretation Act 1978 (c. 30)) made under those Acts.

81D

For the purposes of this Part—

• “"tax”” (“"treth**”") means any devolved tax;

• “"tax advantage”” (“"mantais drethiannol**”") means—relief or increased relief from tax,repayment or increased repayment of tax,avoidance or reduction of a charge to tax,deferral of a payment of tax or advancement of a repayment of tax, ...avoidance of an obligation to deduct or account for tax , and tax credit or increased tax credit.

Counteracting tax advantages

81E

• (1) WRA may make such adjustments as it considers just and reasonable to counteract a tax advantage that would (ignoring this Part) arise from an artificial tax avoidance arrangement.

• (2) An adjustment may be made in respect of the devolved tax in question or any other devolved tax.

• (3) An adjustment must be made—

• (a) where the adjustment relates to a tax return in respect of which an enquiry is in progress, by amending the return in a closure notice issued under section 50;

• (b) otherwise by means of a WRA assessment.

• (4) WRA may not make an adjustment unless it has complied with the requirements of sections 81F and 81G.

81F

• (1) WRA may issue a notice (a ““proposed counteraction notice””) to a devolved taxpayer if WRA considers—

• (a) that a tax advantage has arisen to a person from an artificial tax avoidance arrangement, and

• (b) that the tax advantage should be counteracted by means of an adjustment under section 81E.

• (2) A proposed counteraction notice must—

• (a) specify the tax avoidance arrangement and the tax advantage,

• (b) explain why WRA considers that a tax advantage has arisen from an artificial tax avoidance arrangement,

• (c) set out the adjustment that WRA proposes to make in order to counteract the tax advantage,

• (d) specify any amount that the devolved taxpayer will be required to pay in accordance with the proposed WRA assessment, and

• (e) inform the devolved taxpayer—

• (i) that a final counteraction notice is to be issued after the expiry of the period of 45 days beginning with the day on which the proposed counteraction notice is issued,

• (ii) that the devolved taxpayer may request that WRA extend that 45 day period, and

• (iii) that the devolved taxpayer may make written representations to WRA at any time before the final counteraction notice is issued.

81G

• (1) WRA must, after the expiry of the 45 day period mentioned in section 81F(2)(e)(i) or such longer period as WRA has agreed to, issue a notice (a ““final counteraction notice””) to the devolved taxpayer.

• (2) A final counteraction notice must state whether the tax advantage arising from the tax avoidance arrangement is to be counteracted by means of an adjustment under section 81E.

• (3) In determining whether the tax advantage is to be counteracted WRA must have regard to any written representations made by the devolved taxpayer.

• (4) If a final counteraction notice states that a tax advantage is to be counteracted by means of an adjustment the notice must also—

• (a) specify the adjustment required to give effect to the counteraction,

• (b) where the adjustment relates to a tax return in respect of which an enquiry is in progress, specify the amendment of the return which is to be included in the closure notice issued under section 50 when WRA reaches it conclusions in the enquiry,

• (c) where paragraph (b) does not apply—

• (i) be accompanied by the WRA assessment which gives effect to the adjustment, or

• (ii) where a WRA assessment giving effect to the adjustment has been made, specify that assessment, and

• (d) specify any amount that the devolved taxpayer—

• (i) will be required to pay as a result of the amendment specified under paragraph (b), or

• (ii) is required to pay in accordance with the WRA assessment mentioned in paragraph (c).

• (5) If a final counteraction notice states that a tax advantage is not to be counteracted it must state the reasons for WRA's decision.

Proceedings before a court or tribunal

81H

In proceedings before a court or the tribunal in connection with the general anti-avoidance rule, it is for WRA to show—

• (a) that there is an artificial tax avoidance arrangement, and

• (b) that the adjustments made (or to be made) to counteract the tax advantage arising from the arrangement are just and reasonable.

Commencement and transitional provision

81I

• (1) The general anti-avoidance rule has effect in relation to any tax avoidance arrangement entered into on or after the date on which this Part comes into force.

• (2) Where a tax avoidance arrangement forms part of any other arrangements entered into before that day, those other arrangements are to be ignored for the purposes of section 81C(4) unless the result of having regard to those other arrangements would be to determine that the tax avoidance arrangement was not artificial.

84A

In this Part, references to prejudice to the assessment or collection of WRA-collected tax include prejudice to the assessment or collection of any amount payable in respect of a tax credit.

118A

• (1) Where a person becomes liable to a penalty under section 118 in respect of a tax return that the person is required to make under section 39 of LDTA, a penalty period—

• (a) begins with the day after the filing date for the tax return, and

• (b) ends 12 months later, unless extended under subsection (2)(b).

• (2) If, before the end of the penalty period, the person is required to make another tax return under section 39 of LDTA (“tax return B”) but fails to do so on or before the filing date for tax return B—

• (a) the person is not liable to a penalty under section 118 in respect of that failure but is liable to a penalty under this section instead, and

• (b) the penalty period is extended so that it ends 12 months after the filing date for tax return B.

• (3) The amount of the penalty to which a person is liable under this section is determined by reference to the number of tax returns that the person—

• (a) has been required to make under section 39 of LDTA during the penalty period, but

• (b) has failed to make on or before the filing dates for those returns.

• (4) If the failure to make tax return B on or before the filing date is the person's first failure during the penalty period, P is liable to a penalty of £200 in respect of that failure.

• (5) If the failure to make tax return B on or before the filing date is the person's second failure during the penalty period, P is liable to a penalty of £300 in respect of that failure.

• (6) If the failure to make tax return B on or before the filing date is the person's third or subsequent failure during the penalty period, P is liable to a penalty of £400 in respect of that failure.

• (7) A penalty period may be extended more than once under subsection (2)(b).

122ZA

• (1) Where a person becomes liable to a penalty under section 122 in respect of a failure to pay an amount of landfill disposals tax on or before the penalty date, a penalty period—

• (a) begins with the day after the penalty date, and

• (b) ends 12 months later, unless extended under subsection (2)(b).

• (2) If, before the end of the penalty period, the person fails to pay another amount of landfill disposals tax (“amount B”) on or before the penalty date for that amount—

• (a) the person is not liable to a penalty under section 122(1) in respect of that failure but is liable to a penalty under this section instead, and

• (b) the penalty period is extended so that it ends 12 months after the penalty date for amount B.

• (3) The amount of the penalty to which a person is liable under this section is determined by reference to—

• (a) amount B, and

• (b) the number of times during the penalty period on which the person has failed to pay an amount of landfill disposals tax on or before the penalty date for that amount.

• (4) If the failure is the person's first failure during the penalty period, the person is liable to a penalty of 2% of amount B in respect of that failure.

• (5) If the failure is the person's second failure during the penalty period, the person is liable to a penalty of 3% of amount B in respect of that failure.

• (6) If the failure is the person's third or subsequent failure during the penalty period, the person is liable to a penalty of 4% of amount B in respect of that failure.

• (7) A penalty period may be extended more than once under subsection (2)(b).

122A

• (1) This section applies where a person is liable to a penalty under section 122 or 122ZA in respect of a failure to pay an amount of devolved tax on or before the penalty date for that amount.

• (2) If any of the amount remains unpaid after the end of the period of 6 months beginning with the day falling 30 days before the penalty date, the person is liable to a further penalty.

• (3) The further penalty is 5% of the amount that remains unpaid.

• (4) If any of the amount remains unpaid after the end of the period of 12 months beginning with the day falling 30 days before the penalty date, the person is liable to a second further penalty.

• (5) The second further penalty is 5% of the amount that remains unpaid.

Penalty for failure to pay amount payable in respect of tax credit

123A

• (1) This section applies where a person is required to pay an amount as a result of a WRA assessment made under section 55A.

• (2) The person is liable to a penalty if he or she fails to pay the amount on or before the penalty date.

• (3) The penalty date is the day falling 30 days after the day by which the amount was required to be paid.

• (4) The penalty is 5% of the amount payable as a result of the WRA assessment.

157B

• (1) This section applies to an amount payable in respect of a tax credit.

• (2) If the amount is not paid on or before the date by which it is required to be paid, the amount carries interest (referred to in this Part as “late payment interest”) at the late payment interest rate for the period—

• (a) beginning with the late payment interest start date, and

• (b) ending with the date of payment.

• (3) Where the amount is payable as a result of a WRA assessment in a case involving a situation mentioned in section 55A(a) or (b), the late payment interest start date is—

• (a) if the tax credit in question was claimed in a tax return, the day after the filing date for the tax return;

• (b) if the tax credit in question was claimed by any other means, the day after that on which an amount equal to the amount was paid to a person in respect of the claim.

• (4) Where the amount is payable as a result of a WRA assessment in a case involving a situation mentioned in section 55A(c), the late payment interest start date is the day after that by which the amount was required to be paid.

• (5) But where section 160 applies, the late payment interest start date for the purposes of this section is the date specified in that section.

CHAPTER 3A — PAYMENT AND RECOVERY OF WRA-collected TAX ETC SUBJECT TO REVIEW OR APPEAL

181A

The fact that a person to whom an appealable decision applies has—

• (a) requested a review of the decision, or

• (b) appealed against it,

does not affect any requirement on the person to pay an amount of WRA-collected tax (and interest on that amount).

181B

• (1) This section applies where a person—

• (a) gives a notice of request to review an appealable decision, or

• (b) makes an appeal against such a decision.

• (2) If the person thinks that an excessive amount of WRA-collected tax has been charged on the person in consequence of the decision, the person may make a request to WRA to postpone the recovery of the amount of WRA-collected tax that the person thinks is excessive (and interest on that amount) (a ““postponement request””).

• (3) A postponement request must specify—

• (a) the amount of WRA-collected tax in respect of which the request is made, ...

• (b) the reasons why the person making the request thinks the amount is excessive , and

• (c) where the request relates to an amount of landfill disposals tax, the reasons why the person making the request thinks that recovery of the amount (and interest on that amount) would cause the person financial hardship.

• (4) If WRA

• (a) thinks that the person making the postponement request has reasonable grounds for thinking that the amount of WRA-collected tax to which the request relates is excessive, and

• (b) where the request relates to an amount of landfill disposals tax, has reason to believe that recovery of the amount (and interest on that amount) would cause the person financial hardship,

WRA may grant the postponement request.

• (5) If WRA

• (a) thinks that it is only in respect of part of the amount that the person has reasonable grounds for thinking the amount is excessive , or

• (b) where the request relates to an amount of landfill disposals tax, has reason to believe that it is only in respect of part of the amount (and interest on that part) that recovery would cause the person financial hardship,

WRA may grant the request in respect of such part of the amount as it thinks appropriate.

• (6) WRA may make the grant of the postponement request (in whole or in part) conditional on the provision of adequate security.

• (7) WRA must issue a notice of its decision to the person who made the postponement request.

181C

• (1) A postponement request connected to a review must be made by giving notice of the request to WRA before the end of the period specified in section 174 for requesting the review.

• (2) But if a late request for a review is made under section 175, the postponement request must be made at the same time as the late request.

• (3) A postponement request connected to an appeal must be made by giving notice to WRA before the end of the period specified in section 179 for making the appeal.

• (4) But if the tribunal gives permission under section 180 for a late appeal to be made, the postponement request must be made at the same time as permission is sought for the late appeal.

• (5) Subsections (1) and (3) are subject to section 181D.

181D

• (1) Where a person—

• (a) requests a review before the end of the period specified in section 174, and

• (b) makes a postponement request connected to the review after the end of that period,

WRA may consider the postponement request only if it is satisfied that the conditions in subsection (3) are met.

• (2) Where a person—

• (a) makes an appeal before the end of the period specified in section 179, and

• (b) makes a postponement request connected to the appeal after the end of that period,

WRA may consider the postponement request only if it is satisfied that the conditions in subsection (3) are met.

• (3) The conditions are that the person making the postponement request —

• (a) had a reasonable excuse for not making the request during the period specified in section 174 or 179, as the case may be, and

• (b) subsequently made the request without unreasonable delay.

181E

• (1) A person who makes a postponement request may, within the period of 30 days beginning with the date WRA issues the notice of its decision on the request, apply to the tribunal for a review of WRA's decision.

• (2) The tribunal may determine that WRA's decision is to be—

• (a) affirmed,

• (b) cancelled, or

• (c) replaced by another decision that WRA could have made.

181F

• (1) This section applies where—

• (a) a postponement request has been granted by WRA or the tribunal,

• (b) there is a subsequent change in circumstances, and

• (c) in consequence of that change, either WRA or the person who made the request thinks—

• (i) that the amount of WRA-collected tax in respect of which the request was granted should be varied;

• (ii) where the grant of the request is conditional on the provision of adequate security, that the condition should be varied.

• (2) Either party may seek the agreement of the other by issuing a notice to the other party specifying the proposed variation.

• (3) If an agreement is reached, WRA must issue a notice to the person confirming the variation.

• (4) The variation has effect from the date WRA issues the notice under subsection (3).

• (5) If no agreement is reached within the period of 21 days beginning with the date the notice is issued under subsection (2), either party may apply to the tribunal for a determination.

• (6) The tribunal may determine such an application by—

• (a) confirming the proposed variation,

• (b) refusing the proposed variation, or

• (c) making such other variation as the tribunal thinks appropriate.

181G

• (1) WRA must not take any action to recover a postponed amount during the postponement period.

• (2) A postponed amount means—

• (a) an amount of WRA-collected tax specified in a postponement request (unless the request is a late request made in accordance with section 181C(2) or (4) or section 181D), or

• (b) an amount of WRA-collected tax in respect of which a postponement request is granted by WRA or the tribunal.

• (3) In the case of a postponed amount falling within subsection (2)(a), the postponement period for the amount—

• (a) begins with the day on which the postponement request is made, and

• (b) ends—

• (i) if the request is granted, with the day on which it is granted,

• (ii) if the request is not granted and no application is made to the tribunal for a review of that decision, with the first day after the end of the period for making such an application, or

• (iii) if the request is not granted and an application is made to the tribunal for a review of that decision, with the day on which the tribunal makes its determination.

• (4) In the case of a postponed amount falling within subsection (2)(b) the postponement period for the amount—

• (a) begins with the date on which the postponement request is granted by WRA or the tribunal, and

• (b) ends—

• (i) if the postponement request was made in connection with a review of an appealable decision, with the day on which WRA issues a notice of the conclusions of the review, or

• (ii) if the postponement request was made in connection with an appeal against an appealable decision, with the day on which the tribunal determines the appeal.

• (5) Where a postponed amount falling within subsection (2)(b) is varied under section 181F, the varied amount is to be treated as the postponed amount from the date of the variation.

• (6) In this section, references to a postponement request being granted include cases where the request is granted in part.

181H

• (1) Where a person makes (in accordance with TCEA) a further appeal against the tribunal's determination of an appeal against an appealable decision, sections 181B, 181C, 181E, 181F and 181G apply to the further appeal as they apply to an appeal, but as if the following modifications were made.

• (2) Section 181B has effect as if for subsections (3), (4) and (5), there were substituted—

(3) A postponement request must specify— (a) the amount of WRA-collected tax in respect of which the request is made, (b) the reasons why the person making the request thinks the amount is excessive, and (c) the reasons why the person thinks that recovery of the amount (and interest on the amount) would cause the person serious financial hardship. (4) If WRA— (a) thinks that the person making the postponement request has reasonable grounds for thinking that the amount of WRA-collected tax to which the request relates is excessive, and (b) has reason to believe that recovery of the amount (and interest on the amount) would cause the person serious financial hardship, WRA may grant the request. (5) But if WRA— (a) thinks that it is only in respect of part of the amount that the person has reasonable grounds for thinking that the amount is excessive, or (b) has reason to believe that it is only in respect of part of the amount (and interest on that part) that recovery would cause the person serious financial hardship, WRA may grant the request in respect of such part of the amount as it thinks appropriate.

• (3) Section 181C has effect as if—

• (a) in subsection (3), for ““before the end of the period specified in section 179 for making the appeal”” there were substituted “ on or before the day on which the further appeal is made ”, and

• (b) subsection (4) were omitted.

• (4) Section 181F has effect as if, in subsection (1), for paragraph (a) there were substituted—

(a) a postponement request has been granted by— (i) the Upper Tribunal where the request relates to a further appeal made under section 11 of TCEA, or (ii) the relevant appellate court specified under subsection (11) of section 13 of TCEA where the request relates to a further appeal made under that section,

• (5) Section 181G has effect as if—

• (a) in subsection (2)(a) the words ““(unless the request is a late request made in accordance with section 181C(2) or (4) or section 181D)”” were omitted, and

• (b) for subsection (4)(b) there were substituted—

(b) ends on the day on which the further appeal is determined.

.

• (6) The references in sections 181E(1) and (2), 181F(5) and (6) and 181G(2), (3) and (4) to ““the tribunal”” are to be read as references to—

• (a) the Upper Tribunal in a case where the further appeal is made under section 11 of TCEA, or

• (b) the relevant appellate court specified under subsection (11) of section 13 of TCEA in a case where the further appeal is made under that section.

181I

• (1) In section 11(5) of TCEA (decisions excluded from right of appeal to Upper Tribunal ), after paragraph (cb) (as inserted by section 116(1) of this Act) insert—

(cc) any decision of the First-tier Tribunal under section 181E or 181F of that Act (appeals relating to postponement requests),

.

• (2) In section 13(8) of TCEA (decisions excluded from right of appeal to Court of Appeal etc.), after paragraph (bb) (as inserted by section 116(2) of this Act) insert—

(bc) any decision of the Upper Tribunal under section 181E or 181F of that Act (appeals relating to postponement requests),

.

181J

• (1) This Chapter applies to the payment and recovery of amounts relating to tax credits—

• (a) as if references to an amount of WRA-collected tax (including amounts of landfill disposals tax) were references to an amount payable in respect of a tax credit,

• (b) as if references to interest on an amount of WRA-collected tax were references to interest on an amount payable in respect of a tax credit, and

• (c) as if references to WRA-collected tax being charged or chargeable on a person were references to an amount being payable by a person in respect of a tax credit.

183A

• (1) This section applies where—

• (a) on an appeal against an appealable decision, the tribunal determines that

• (i) an amount of WRA-collected tax paid by a person is to be repaid by WRA, or

• (ii) an amount paid by a person in respect of a tax credit is to be repaid by WRA, and

• (b) WRA applies under section 11(4) or 13(4) of TCEA for permission to make a further appeal.

• (2) When applying for permission WRA may request the tribunal's permission to postpone repayment of the amount until—

• (a) the further appeal is determined, or

• (b) WRA obtains adequate security for the amount.

• (3) The relevant tribunal or court must grant WRA's request if it—

• (a) gives permission for the further appeal to proceed, and

• (b) thinks that granting the request is necessary to protect the revenue.

• (4) If permission to make a further appeal is not given—

• (a) by the First-tier Tribunal on an application under section 11(4)(a) of TCEA, or

• (b) by the Upper Tribunal on an application under section 13(4)(a) of that Act,

the fact that WRA made a request under subsection (2) when making the application for permission does not prevent WRA from making another request under that subsection if WRA applies for permission to make a further appeal under section 11(4)(b) or 13(4)(b) of TCEA.

• (5) But otherwise, the decision of the relevant tribunal or court on a request under subsection (2) is final.

• (6) In this section—

• “"relevant tribunal or court”” (“"tribiwnlys neu lys berthnasol**”") means whichever of the following WRA applies to for permission to make a further appeal—the First-tier Tribunal;the Upper Tribunal;the relevant appellate court;

• “"relevant appellate court”” (“"llys apeliadol perthnasol**”") means the court specified as such under section 13(11) of TCEA.

Crown application for the purposes of the visitor levy

187A

• (1) In so far as the following provisions of this Act apply to land transaction tax, they bind the Crown—

• (a) Part 3;

• (b) Part 4 (other than Chapter 6);

• (c) Part 6 (other than sections 157A, 160 and 161(2)(b));

• (d) Part 7 (other than sections 168, 169 and 170);

• (e) Part 8 (other than sections 172(1)(d) and (e), (3)(b) and (c), (4), (5) and (6), 182 and 183);

• (f) sections 190 and 191.

• (2) But Part 4 does not apply to Her Majesty in Her private capacity (within the meaning of section 38(3) of the Crown Proceedings Act 1947 (c. 44)).

24A

• (1) WRA must, in relation to each county or county borough in which the visitor levy has been introduced, keep a separate account for the proceeds of the visitor levy collected in respect of that county or county borough.

• (2) WRA must pay the proceeds of the visitor levy collected each financial year in respect of a principal council’s area (including any interest on the proceeds) to that principal council, no later than—

• (a) 30 June in the following financial year, or

• (b) such other date as may be agreed between WRA and the principal council.

• (3) But, subject to regulations under subsection (5), WRA must do so after deducting from the proceeds received for the financial year such amounts as WRA considers appropriate in respect of the costs it has incurred in connection with the exercise of its functions during that financial year in relation to the visitor levy for that area.

• (4) WRA may also, subject to regulations under subsection (5), deduct from the proceeds received for the financial year such amounts as WRA considers appropriate in respect of costs WRA considers it may incur and disbursements WRA considers may become payable—

• (a) in connection with the exercise of its functions during the financial year in relation to the visitor levy for that area, but

• (b) after it has paid the proceeds for that year to the principal council.

• (5) The Welsh Ministers may by regulations make further provision about the deduction of amounts in respect of costs, or the deduction of disbursements, including provision—

• (a) limiting the amount of costs or disbursements WRA may deduct (including by reference to a percentage of the disbursements or the costs incurred or to a maximum amount that may be deducted, or by other means);

• (b) about how costs and disbursements are to be apportioned between principal councils that have introduced the visitor levy in their areas;

• (c) specifying types of cost or disbursement that may, must or must not be deducted.

• (6) For the purposes of this section—

• (a) references to proceeds of the visitor levy include any financial penalties collected in relation to the levy;

• (b) payments to principal councils under subsection (2) are not disbursements.

117A

• (1) In this Part—

• “devolved tax return” (“ffurflen treth ddatganoledig”) means a tax return relating to a devolved tax;

• “visitor accommodation provider” (“darparwr llety ymwelwyr”) and “VAP” (“DLlY”) have the same meaning as in section 3 of the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 00) (see also section 120G, in relation to persons that have ceased to be a VAP);

• “visitor levy return” (“ffurflen ardoll ymwelwyr”) means a return relating to the visitor levy (see section 36 of the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025).

• (2) Where a visitor accommodation provider has‍ not indicated to WRA whether the provider will make annual or quarterly returns, the provider is to be treated for the purposes of this Part as making annual returns.

Penalty points and penalties for failures to make visitor levy returns

120A

• (1) A visitor accommodation provider (“VAP”) is liable to a penalty point if the‍ VAP fails to make a visitor levy return on or before the filing date for the return.

• (2) Where a VAP is liable to a penalty point, WRA may award the penalty point by giving notice to the VAP.

• (3) Notice under subsection (2) must be given—

• (a) if the VAP makes annual visitor levy returns, before the end of the period of 48 weeks beginning with the day after the filing date for the return;

• (b) if the VAP makes quarterly visitor levy returns, before the end of the period of 11 weeks beginning with the day after the filing date for the return.

• (4) WRA may withdraw a penalty point awarded under this section by giving notice to the VAP; and where a penalty point is withdrawn, the VAP is to be treated as never having received the penalty point.

120B

• (1) If, having been awarded a penalty point, a VAP reaches the penalty threshold, the VAP is liable to a penalty of £100.

• (2) The penalty threshold is—

• (a) if the VAP makes annual returns, two penalty points, and

• (b) if the VAP makes quarterly returns, four penalty points.

• (3) A VAP that becomes liable to a penalty under subsection (1) remains liable to that penalty regardless of the subsequent expiry of any of the penalty points awarded to the VAP.

120C

• (1) A penalty point awarded to a VAP in relation to a failure to make an annual visitor levy return expires at the end of the period of 24 months beginning with the filing date of the return to which the penalty point relates.

• (2) A penalty point awarded to a VAP in relation to a failure to make a quarterly visitor levy return expires at the end of the period of 12 months beginning with the filing date of the return to which the penalty point relates.

120D

A VAP that has one or more unexpired penalty points may not change the frequency with which they make visitor levy returns (as to which, see section 37 of the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 00)).

120E

• (1) This section applies where a VAP’s failure to make a visitor levy return continues after the end of the period of 6 months beginning with the day after the filing date.

• (2) The VAP is liable to a penalty of £100 (regardless of whether the VAP has been awarded any unexpired penalty points, or is liable to any penalty points, in relation to the return in question or any other visitor levy return).

120F

• (1) This section applies where a VAP’s failure to make a visitor levy return continues after the end of the period of 12 months beginning with the day after the filing date.

• (2) The VAP is liable to a penalty (regardless of whether the VAP has been awarded any unexpired penalty points, or is liable to any penalty points, in relation to the return in question or any other visitor levy return).

• (3) Where, by failing to make the visitor levy return, the VAP deliberately withholds information that would enable or assist WRA to assess the VAP’s liability to the visitor levy, the penalty is—

• (a) £300, or

• (b) a greater amount, not exceeding 95% of the amount of visitor levy to which the person would have been liable if the visitor levy return had been made.

• (4) In any case not falling within subsection (3), the penalty is the greater of—

• (a) 5% of the amount of visitor levy to which the VAP would have been liable if the visitor levy return had been made, and

• (b) £300.

120G

• (1) In sections 117A(2), 120A, 120E and 120F, references to a “visitor accommodation provider” (or a “VAP”) include a person that, by virtue of section 41 of the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 00), is subject to a requirement to make a visitor levy return.

• (2) In sections 120B to 120D, references to a “VAP” include a person that has ceased to be a VAP.

120H

• (1) For the purposes of sections 120A to 120D and 120G (in its application in relation to sections 120A to 120D)—

• (a) the members of a partnership or other unincorporated body are together to be treated as if they were a single person (distinct from the persons that are members of the partnership or body),

• (b) a failure by one or more members of the partnership or body to make a visitor levy return on or before the filing date for the return is to be treated as a failure by the deemed single person referred to in paragraph (a), and

• (c) other things done by or in relation to a member of the partnership or body (see section 56(1) to (4) of the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 00) (“the 2025 Act”)) are also to be treated as done by or in relation to that deemed single person.

• (2) The deemed single person referred to in subsection (1)(a) is to be treated as continuing in existence even if there is a change in the membership of the partnership or body.

• (3) Where, under section 120B, a penalty is assessed on the deemed single person referred to in subsection (1)(a)—

• (a) every relevant member is jointly and severally liable for the penalty, and

• (b) section 56(5) and (6) of the 2025 Act (liability of members) do not apply.

• (4) For the purposes of subsection (3)(a)—

• (a) “relevant member” means a person that is, on the day the penalty is assessed—

• (i) a partner in the partnership, or (as the case may be)

• (ii) a managing member of the body (within the meaning of the 2025 Act);

• (b) a person is a relevant member even if the person was not a partner in the partnership or managing member of the body when liability was incurred to one or more of the penalty points by virtue of which liability to the penalty arose;

• (c) the relevant members are jointly and severally liable for the penalty even if none of them were partners in the partnership or managing members of the body when liability was incurred to the penalty points by virtue of which liability to the penalty arose.

Reduction in penalty for disclosure of information

122B

• (1) This section applies where a‍ person is liable to a penalty under section 122 in respect of a failure to pay an amount of visitor levy on or before the penalty date for that amount.

• (2) If any of the amount remains unpaid after the end of the period of 6 months beginning with the day falling 30 days before the penalty date, the‍ person is liable to a further penalty.

• (3) The further penalty is 5% of the amount that remains unpaid, but—

• (a) if 5% of the unpaid amount is lower than £100, the penalty is £100;

• (b) if 5% of the unpaid amount is greater than £5000, the penalty is £5000.

• (4) If any of the amount remains unpaid after the end of the period of 12 months beginning with the day falling 30 days before the penalty date, the‍ person is liable to a second further penalty.

• (5) The second further penalty is 5% of the amount that remains unpaid, but—

• (a) if 5% of the unpaid amount is lower than £100, the penalty is £100;

• (b) if 5% of the unpaid amount is greater than £5000, the penalty is £5000.

187B

• (1) This Act, in so far as it applies in relation to the visitor levy, binds the Crown.

• (2) This Act, in so far as it applies in relation to the visitor levy, does not make the Crown criminally liable, but it applies to persons in the service of the Crown as it applies to other persons.

• (3) In subsections (1) and (2), references to “this Act include a reference to an enactment made under this Act.