Part 7Administration

Chapter 5Payment and enforcement

Set off

130Set-off: England and Wales and Northern Ireland

1

This section applies where there is both a credit and a debit in relation to a person.

2

The Commissioners may set the credit against the debit (subject to section 131 and any obligation of the Commissioners to set the credit against another sum).

3

The obligations of the Commissioners and the person concerned are discharged to the extent of any set-off under subsection (2).

4

Credit”, in relation to a person, means—

a

a sum that is payable by the Commissioners to the person under or by virtue of an enactment, or

b

a relevant sum that may be repaid to the person by the Commissioners.

5

For the purposes of subsection (4), in relation to a person, “relevant sum” means a sum that was paid in connection with any liability (including any purported or anticipated liability) of that person to make a payment to the Commissioners under or by virtue of an enactment or under a contract settlement.

6

Debit”, in relation to a person, means a sum that is payable by the person to the Commissioners under or by virtue of an enactment or under a contract settlement.

7

In this section references to sums paid, repaid or payable by or to a person (however expressed) include sums that have been or are to be credited by or to a person.

8

This section has effect without prejudice to any other power of the Commissioners to set off amounts.

9

In section 429(5) of ITA 2007 (giving through self-assessment)—

a

in the definition of “tax repayment”, for “set-off that falls to be made against the individual's liabilities” substitute “ relevant set-off ”, and

b

insert at the end—

relevant set-off”, in relation to an individual, means any set-off that falls to be made against the individual's liabilities, other than any set-off under section 130 of FA 2008.

10

Subsections (1) to (8) extend to England and Wales and Northern Ireland only.