Section 126 Reasonable excuse for failure to make tax return or pay tax or amount payable in respect of tax creditF7I1C1
England and Wales
If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to make a tax return, the person is not liable to a penalty under sections 118 to 120 F1, 120B, 120E or 120F, or (as the case may be) to a penalty point under section 120A, in relation to the failure.
If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to pay an amount payable in respect of a tax credit, the person is not liable to a penalty under section 123A in relation to the failure.
For the purposes of subsections (1) F6, (2) and (2A)—
an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control;
where a person relies on another person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure;
where a person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.
Annotations
Textual amendments
- F1
Words in s. 126(1) inserted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 46(a)
- F2
Word in Act substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 21
- F3
Words in s. 126(2) substituted (1.4.2018) by Landfill Disposals Tax (Wales) Act 2017 (anaw 3), s. 97(2), Sch. 4 para. 13; S.I. 2018/35, art. 3
- F4
Word in s. 126(2) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 46(b)
- F5
S. 126(2A) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 26(2)
- F6
Words in s. 126(3) substituted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 26(3)
- F7
Words in s. 126 heading inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 26(4)
Modifications
- C1
Ss. 125-128 applied (1.4.2018) by The Tax Collection and Management (Reimbursement Arrangements) (Wales) Regulations 2018 (S.I. 2018/88), regs. 1(2), 8(3)
Commencement
- I1
S. 126 in force at 1.4.2018 by S.I. 2018/33, art. 3
Notes on the whole Act
Textual amendments
- F1
Word in Act substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 21
Notes on Chapter 2
Textual amendments
- F1
Words in Pt. 5 Ch. 2 heading inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 23