137Potential lost revenue: lossesE+W
(1)Where an inaccuracy has the result that a loss is wrongly recorded for the purposes of a [F1WRA-collected] tax and the loss has been wholly used to reduce the amount payable in respect of that tax, the potential lost revenue is calculated in accordance with section 135.
(2)Where an inaccuracy has the result that a loss is wrongly recorded for the purposes of a [F1WRA-collected] tax and the loss has not been wholly used to reduce the amount payable in respect of that tax, the potential lost revenue is—
(a)the potential lost revenue calculated in accordance with section 135 in respect of any part of the loss that has been used to reduce the amount payable in respect of that tax, plus
(b)10% of any part that has not.
(3)Subsections (1) and (2) apply both—
(a)to a case where no loss would have been recorded but for the inaccuracy, and
(b)to a case where a loss of a different amount would have been recorded (but in that case subsections (1) and (2) apply only to the difference between the amount recorded and the true amount).
(4)The potential lost revenue in respect of a loss is nil where, because of the nature of the loss or the circumstances of the person chargeable to the [F1WRA-collected] tax, there is no reasonable prospect of the loss being used to support a claim to reduce any person's liability to that tax.
Textual Amendments
F1Word 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
Commencement Information
I1S. 137 in force at 1.4.2018 by S.I. 2018/33, art. 3