Why would a tax refund not be given where there is a tax credit?

[ClubMan]

What it really means that in PAYE cases, because the tax has already been paid through the PAYE system an exception is made so that tax can be refunded.

But, as far as I know, that's not what happens in practice? Unless it's only on appeal (?) that a refund of tax already deducted cash be obtained?

 

[Sophrosyne]

I don't know why that would be the case.

The section does not confine the offset to income paid under the Self-Assessment procedure and the manual states that it to be applied to PAYE cases by end-of-year review.

Are you aware of PAYE cases where the offset was refused?