This section applies where there has been a transfer from one person ("the original creditor") to another person ("the current creditor") of a right to be paid a sum ("the transferred sum") by the Commissioners.
The Commissioners—
Subsection (2) applies whether the sum payable by the original creditor to the Commissioners first became payable before or after the transfer (but not if it only became payable after the Commissioners discharged their obligation to pay the transferred sum to the current creditor).
The following are discharged to the extent of any set-off under this section—
An obligation under or by virtue of an enactment (other than this section) to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a) and to any exercise of the power under subsection (2)(b).
A power under or by virtue of an enactment (other than this section) or under a rule of law to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a).
In determining the sum (if any) to be paid, the Commissioners may make any reduction that they could have made if the original creditor had retained the right to be paid the transferred sum (in addition to any other reduction that they are entitled to make), including a reduction arising from any defence to a claim for the sum.
In this section—
Where the right to be paid the transferred sum is dependent on the making of a claim—
This section has effect where the right to be paid the transferred sum was transferred from the original creditor on or after 25 June 2008.