Tax Collection and Management (Wales) Act 2016 section 128

Time limit for assessment of penalties under Chapter 2

Section 128 sets out the time limits within which the Welsh Revenue Authority must assess penalties for failures to file tax returns, pay devolved taxes, or pay amounts due in respect of tax credits.

• WRA must assess any penalty on or before the later of two possible deadline dates — Date A and (where applicable) Date B.
• Date A is 2 years from the filing date (for late returns), or 2 years from the penalty date (for late payment of tax or tax credit amounts).
• Date B is 12 months after the end of the appeal period for the related tax assessment, or 12 months after the tax liability is otherwise ascertained.
• The appeal period runs until the deadline for lodging an appeal (if none is made) or until any appeal is finally determined or withdrawn.

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