Regulation 3 Interpretation
Paragraphs (2) to (4) below apply in any case where —
the Secretary of State is liable to pay to a receiving authority at any time an amount or amounts under one or more of the first relevant provisions, and
that receiving authority is liable to pay to him at the same time an amount or amounts under one or more of the second relevant provisions.
If the total of the amount or amounts mentioned in paragraph (1)(a) above exceeds the total of the amount or amounts mentioned in paragraph (1)(b) above, the Secretary of State may set off the latter in paying the former.
If the total of the amount or amounts mentioned in paragraph (1)(b) above exceeds the total of the amount or amounts mentioned in paragraph (1)(a) above, the receiving authority shall set off the latter in paying the former.
If the total of the amount or amounts mentioned in paragraph (1)(a) above is the same as the total of the amount or amounts mentioned in paragraph (1)(b) above, no payment need be made in respect of the former or the latter.