Find out about tax penalties for Land Transaction Tax (LTT) and Landfill Disposal Tax (LDT), how they're calculated and what you can do.
Contents
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.
LTT is a self-assessed tax. It's the responsibility of the taxpayer to complete and submit an accurate tax return and pay any tax due. Including daily interest and penalties if late.
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's 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 to 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:
- ask us to review it
- appeal to the tax tribunal
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.