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HMRC internal manual

Debt Management and Banking Manual

Set-offs - S130 FA2008: set-offs and assignments


The set-off legislation allows repayments nominated to charity under the Self Assessment Donate Scheme to continue to be made to that charity. All other assignments will be secondary to set-off.

Section 133 FA2008 gives HMRC the power to set-off repayments against a taxpayer’s debts where the right to the repayment has been assigned to someone else.

From now on when dealing with assignments (unless assigned under the SA Donate Scheme):

  • S133(10) provides that assignments made on or after 25 June 2008 will not prevent you from setting-off the repayment against the assignor’s (customer’s) debts and, where appropriate the assignee’s debts, before making a net repayment
  • any assignments dated before 25 June 2008 should be honoured and the repayment made to the assignee.

Please also note that the new right of set-off applies to all debts administered by HMRC including National Insurance Contributions.