Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 58

Late payment interest on devolved taxes and penalties

Section 58 of Schedule 23 replaces the previous provisions on late payment interest, setting out when interest accrues on unpaid devolved taxes and penalties, how the interest period is calculated, and supplementary rules governing late payment interest.

• Late payment interest applies to amounts of devolved tax stated in a tax return, arising from amendments, corrections, or assessments, or payable under a determination or assessment made in place of a required return — interest runs from the day after the filing date until the date of payment.
• Late payment interest also applies to penalties required to be paid under the tax collection legislation — interest runs from the day after the penalty payment deadline until the date of payment.
• Late payment interest is not compounded: interest is not charged on interest, and the interest start date can fall on a non-business day such as a weekend or bank holiday.
• The date of payment includes the date on which an amount is set off against a sum owed by the Welsh Revenue Authority (WRA), and the interest rate used is the late payment interest rate defined in the legislation.