Regulation 107 Adjustment of overpayments and underpayments
In determining, for the purposes specified in paragraph (2), whether for any year there is an adjusted overpayment, and if so its amount, any overpayment or underpayment shall be adjusted, if necessary, in accordance with paragraphs (3) to (7).
The purposes specified in this paragraph are purposes of attributing a repayment (in this regulation referred to as “the relevant repayment”) in accordance with regulation 106.
Any tax paid to the collector in respect of an underpayment for any year shall be treated as tax paid for that year and added to the overpayment or deducted from the underpayment for that year.
Paragraphs (5) to (7) apply to a repayment of an overpayment made prior to the relevant repayment if it was a repayment—
for the same year for which the relevant repayment is due, or
for an earlier year which, if paragraphs (5) to (7) applied to it, would affect the attribution of the relevant repayment under regulation 106.
Where this paragraph applies and the repayment was one to which section 824(5) of the Taxes Act applied, any amount attributable to any year under this regulation and regulation 106 shall be deducted from the overpayment or added to the underpaymentfor that year and any subsequent year for which an adjustment was made under regulation 101(4)(c) in respect of the tax which was repaid.
Where this paragraph applies and the repayment was one to which section 824(5) of the Taxes Act did not apply, it shall be attributed, for the purposes of this regulation, by reference to the circumstances at the time it was made, to such years and in such amounts as the provisions of this regulation and regulation 106 would have required had it been a repayment to which that subsection applied, and any amount so attributed to any year shall be deducted from the overpayment or added to the underpayment for that year and any subsequent year for which an adjustment was made under regulation 101(4)(c) in respect of the tax which was repaid.
If there is more than one repayment to which paragraph (4) applies—
the repayment made first shall be attributed in accordance with paragraph (5) or (6) (as appropriate); and
each repayment made subsequently shall be so attributed successively, starting with the second repayment made, and taking into account any adjustment of any overpayment or underpayment resulting from the attribution under this regulation of any repayment made prior to it.