Tax Collection and Management (Wales) Act 2016 section 125

Special reduction in penalty under Chapter 2

Section 125 allows the Welsh Revenue Authority to reduce penalties for late payment of devolved tax where special circumstances exist, and defines what does and does not count as a special circumstance.

• WRA has discretion to reduce a penalty if special circumstances make it right to do so
• A taxpayer's inability to pay, or the fact that one person's underpayment is offset by another's overpayment, do not count as special circumstances
• An agreed instalment arrangement for paying devolved tax may count as a special circumstance
• Reducing a penalty includes remitting it entirely, suspending it, or agreeing a compromise — and any associated interest is treated in the same way