Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 41

Penalty for failure to make tax return within 12 months from filing date

Schedule 23 paragraph 41 amends section 120 of the Tax Collection and Management (Wales) Act 2016, which deals with the penalty imposed when a person fails to make a tax return within 12 months of the filing date.

• This provision amends the rules on penalties for very late tax returns — those not filed within 12 months of the filing date.
• The amendment clarifies that the penalty applies specifically to a person who is required to make a tax return.
• The penalty is set at a minimum of £300, or a higher amount if appropriate, but capped at 95% of the devolved tax that would have been due had the return been made.
• The penalty structure ensures that those who fail to file for an extended period face a proportionate but capped financial consequence.