Finance Act 1996

34 (1) Transitional payments of tax made on a person’s behalf in relation to times to which this paragraph applies shall be treated as made only for the purpose of being applied in the discharge of that person’s liability to tax charged under Schedule D.

(2) If a transitional payment of tax has been made on a person’s behalf, but it appears to the Board that—

(a) that person was not liable to tax, or

(b) the sum paid exceeded his liability,

the Board shall make or allow such repayments, adjustments or set-offs against unpaid tax as they think appropriate.

(3) In this paragraph “transitional payment of tax” means a payment to which paragraph 33 above applies.