Sequestration - Holding tax refund due

My client is due a tax refund for the financial year 2002/03. About 50% of this is due to childrens tax credit. He was placed in sequestration on 19 November 2003. The inland revenue are refusing to release this refund. His trustee, who is a chartered accountant states that the refund is recoverable by him.

Are the Inland Revenue entitled to with hold this refund? I would have thought that they were obliged to refund the whole amount due to my client, or at least the childrens tax credit element.

Mark
Mark Gosling