Find out about tax penalties for Land Transaction Tax (LTT) and Landfill Disposal Tax (LDT), how they're calculated and what you can do.

Organisation:
First published:
15 July 2019
Last updated:

Overview

At the Welsh Revenue Authority (WRA), we want to make sure that the tax system in Wales is fair to help you pay the right amount of tax at the right time.

If you must pay LTT or LDT and do not meet deadlines and requirements, then you may face a penalty. 

You may have to pay more if it’s later, or if you pay your tax bill late.

You can appeal against a penalty. In certain circumstances, penalties may be suspended, reduced or waived.

If you get a penalty

A notice will include what you owe, how to pay and what to do if you do not agree with the WRA's decision to charge you.

You must pay within 30 days of getting a penalty notice, unless you appeal, otherwise you will be charged daily interest. 

Pay LTT or LDT penalty. 

Multiple penalties

We’ll determine whether each penalty applies based on the facts. Where the penalty is not a fixed amount, we will consider the combined amount of your penalties to ensure it is proportionate.

Penalties for late filing

You may receive a £100 fixed penalty if you fail to send a required tax return on or before the filing date. 

After 6 months, further penalties may apply. 

Late filing

Penalty

Up to 6 months

£100

6 to 12 months late

Extra £300 or 5% of any unpaid tax, whichever is greater

12 months late or more

Another £300; or 5% of any unpaid tax, whichever is greater

Daily interest will still be charged throughout this period.

If you fail file a tax return and you deliberately withhold information that would help assess the amount of tax you owe, your penalty may be:

  • increased to £300
  • an amount not exceeding 95% of the tax due

If you fail to file more returns on time, within the same penalty period, increased penalties may be due. For more information, see technical guidance.

Penalties for paying tax late

You may receive a penalty if you fail to pay an amount of tax by the penalty date stated on your notice.

Penalty for late LTT 

5% of the amount of unpaid tax

Penalty for late LDT

1% of the amount of unpaid tax, unless it’s your second or further failure to pay the tax within a specified penalty period.

Further late tax penalties

Failure to pay (beginning 30 days before penalty date)

Penalty

Within 6 months

Extra 5% of any unpaid tax

Within 12 months

Another 5% of any unpaid tax

Daily interest will still be charged throughout this period. 

How to appeal against a penalty

If you’re unhappy with our decision and have a reasonable excuse, you can:

Penalties may also be reduced, suspended or remitted because of special circumstances.

More information

This is only a summary on the main types of penalty and does not cover:

For more detailed information, see our technical guidance.