§ Mr. Thompsonasked the Chancellor of the Exchequer under what statutory authority the Inland Revenue, having overestimated the first instalment of Schedule D income tax and having re-received the overestimated amount demanded, retains the balance without payment of interest to offset it against the July instalment.
§ Mr. Robert SheldonThe overpaid tax is repaid to the taxpayer if he prefers not to have it set off against the July instalment. As a practical matter, the taxpayer is asked which course he wishes to have adopted where the overpayment is substantial, whilst in smaller cases the set-off is made unless he asks for repayment.