diff --git a/app/models/validations/household_validations.rb b/app/models/validations/household_validations.rb
index 618e16e7b..1f67c12e1 100644
--- a/app/models/validations/household_validations.rb
+++ b/app/models/validations/household_validations.rb
@@ -104,8 +104,8 @@ module Validations::HouseholdValidations
     # 29 Prison / Approved Probation Hostel
     if record.is_internal_transfer? && [3, 4, 7, 9, 10, 13, 14, 19, 21, 23, 24, 25, 26, 27, 28, 29].include?(record.prevten)
       label = record.form.get_question("prevten", record).present? ? record.form.get_question("prevten", record).label_from_value(record.prevten) : ""
-      record.errors.add :prevten, I18n.t("validations.household.prevten.internal_transfer", prevten: label)
-      record.errors.add :referral, I18n.t("validations.household.referral.prevten_invalid", prevten: label)
+      record.errors.add :prevten, :internal_transfer_non_social_housing, message: I18n.t("validations.household.prevten.internal_transfer", prevten: label)
+      record.errors.add :referral, :internal_transfer_non_social_housing, message: I18n.t("validations.household.referral.prevten_invalid", prevten: label)
     end
   end
 
diff --git a/app/services/imports/case_logs_import_service.rb b/app/services/imports/case_logs_import_service.rb
index 6b670ce81..3d2a5e1fb 100644
--- a/app/services/imports/case_logs_import_service.rb
+++ b/app/services/imports/case_logs_import_service.rb
@@ -1,5 +1,11 @@
 module Imports
   class CaseLogsImportService < ImportService
+    def initialize(storage_service, logger = Rails.logger)
+      @logs_with_discrepancies = Set.new
+      @logs_overridden = Set.new
+      super
+    end
+
     def create_logs(folder)
       import_from(folder, :create_log)
       if @logs_with_discrepancies.count.positive?
@@ -193,19 +199,35 @@ module Imports
       apply_date_consistency!(attributes)
       apply_household_consistency!(attributes)
 
-      case_log = CaseLog.new(attributes)
-      save_case_log(case_log, attributes)
+      case_log = save_case_log(attributes)
       compute_differences(case_log, attributes)
-      check_status_completed(case_log, previous_status)
+      check_status_completed(case_log, previous_status) unless @logs_overridden.include?(case_log.old_id)
     end
 
-    def save_case_log(case_log, attributes)
-      case_log.save!
-    rescue ActiveRecord::RecordNotUnique
-      unless attributes["old_id"].nil?
-        record = CaseLog.find_by(old_id: attributes["old_id"])
-        @logger.info "Updating case log #{case_log.id} with legacy ID #{attributes['old_id']}"
+    def save_case_log(attributes)
+      case_log = CaseLog.new(attributes)
+      begin
+        case_log.save!
+        case_log
+      rescue ActiveRecord::RecordNotUnique
+        legacy_id = attributes["old_id"]
+        record = CaseLog.find_by(old_id: legacy_id)
+        @logger.info "Updating case log #{record.id} with legacy ID #{legacy_id}"
         record.update!(attributes)
+        record
+      rescue ActiveRecord::RecordInvalid => e
+        rescue_validation_or_raise(case_log, attributes, e)
+      end
+    end
+
+    def rescue_validation_or_raise(case_log, attributes, exception)
+      if case_log.errors.of_kind?(:referral, :internal_transfer_non_social_housing)
+        @logger.warn("Log #{case_log.old_id}: Removing internal transfer referral since previous tenancy is a non social housing")
+        @logs_overridden << case_log.old_id
+        attributes.delete("referral")
+        save_case_log(attributes)
+      else
+        raise exception
       end
     end
 
diff --git a/spec/services/imports/case_logs_import_service_spec.rb b/spec/services/imports/case_logs_import_service_spec.rb
index 797a42e16..db20cf117 100644
--- a/spec/services/imports/case_logs_import_service_spec.rb
+++ b/spec/services/imports/case_logs_import_service_spec.rb
@@ -156,5 +156,28 @@ RSpec.describe Imports::CaseLogsImportService do
         end
       end
     end
+
+    context "and this is an internal transfer from a non social housing" do
+      before do
+        case_log_xml.at_xpath("//xmlns:Q11").content = "9 Residential care home"
+        case_log_xml.at_xpath("//xmlns:Q16").content = "1 Internal Transfer"
+      end
+
+      it "intercepts the relevant validation error" do
+        expect(logger).to receive(:warn).with(/Removing internal transfer referral since previous tenancy is a non social housing/)
+        expect { case_log_service.send(:create_log, case_log_xml) }
+          .not_to raise_error
+      end
+
+      it "clears out the referral answer" do
+        allow(logger).to receive(:warn)
+
+        case_log_service.send(:create_log, case_log_xml)
+        case_log = CaseLog.find_by(old_id: case_log_id)
+
+        expect(case_log).not_to be_nil
+        expect(case_log.referral).to be_nil
+      end
+    end
   end
 end