Tax Collection and Management (Wales) Act 2016 section 161

Repayment interest on amounts payable by WRA

Section 161 establishes when and how the Welsh Revenue Authority (WRA) must pay interest to a person when it repays an amount that was previously paid to it in connection with a devolved tax, a penalty relating to devolved tax, or a tax credit.

• When WRA repays an amount that was paid to it in connection with a devolved tax liability, a related penalty, or a tax credit, interest (known as repayment interest) may be due on that repayment.
• Repayment interest accrues at the repayment interest rate (as defined in section 163(2) of the Act) if WRA does not make the repayment before the repayment interest start date.
• The repayment interest start date is the later of two dates: the date the amount was originally paid to WRA, or the date the underlying tax, penalty, or tax credit amount became payable to WRA.
• Interest begins to run from the repayment interest start date even if that date falls on a weekend or bank holiday, and it continues to accrue until the date WRA actually makes the repayment.