Tax Collection and Management (Wales) Act 2016 section 160

Late payment interest start date: death of taxpayer

Section 160 provides relief from late payment interest where a taxpayer dies before a tax amount becomes payable and the executor or administrator cannot pay until probate or its equivalent has been granted.

• This section applies when a person who owes Welsh devolved tax, a related penalty, or a tax credit repayment dies before the amount falls due for payment.
• It only applies where the executor or administrator is unable to pay the amount until they have obtained probate, letters of administration, or an equivalent document from another jurisdiction.
• Late payment interest will not start running until the later of the normal interest start date or 30 days after probate (or its equivalent) is granted.
• This effectively gives executors and administrators a 30-day grace period after obtaining the legal authority to deal with the estate, during which no late payment interest accrues.