517. Tax liabilities and tax payments.

Where there is accounted for and paid1 to the Commissioners for Revenue and Customs an amount of tax which is:

  1.  

    (1)     in respect of a connected payment2 or connected transfer3; or

  2.  

    (2)     paid under an assessment4,

that amount is treated as a payment of tax on account of the tax liability (of whatever person) in respect of the connected payment or transfer concerned5.

Where, in respect of a connected payment or transfer, there is a liability to tax6, the Commissioners must allocate any payment made to it7 as is just and reasonable in discharge of some or all of those liabilities