diff --git a/app/models/validations/household_validations.rb b/app/models/validations/household_validations.rb
index 9c291d7e7..4584cea52 100644
--- a/app/models/validations/household_validations.rb
+++ b/app/models/validations/household_validations.rb
@@ -111,8 +111,8 @@ module Validations::HouseholdValidations
 
   def validate_referral(record)
     if record.is_internal_transfer? && record.owning_organisation.provider_type == "PRP" && record.is_prevten_la_general_needs?
-      record.errors.add :referral, I18n.t("validations.household.referral.la_general_needs.internal_transfer")
-      record.errors.add :prevten, I18n.t("validations.household.prevten.la_general_needs.internal_transfer")
+      record.errors.add :prevten, :internal_transfer_fixed_or_lifetime, message: I18n.t("validations.household.prevten.la_general_needs.internal_transfer")
+      record.errors.add :referral, :internal_transfer_fixed_or_lifetime, message: I18n.t("validations.household.referral.la_general_needs.internal_transfer")
     end
 
     if record.owning_organisation.provider_type == "LA" && record.local_housing_referral?
diff --git a/app/services/imports/case_logs_import_service.rb b/app/services/imports/case_logs_import_service.rb
index f8fdfaf17..3b596c863 100644
--- a/app/services/imports/case_logs_import_service.rb
+++ b/app/services/imports/case_logs_import_service.rb
@@ -226,6 +226,11 @@ module Imports
         @logs_overridden << case_log.old_id
         attributes.delete("referral")
         save_case_log(attributes)
+      elsif case_log.errors.of_kind?(:referral, :internal_transfer_fixed_or_lifetime)
+        @logger.warn("Log #{case_log.old_id}: Removing internal transfer referral since previous tenancy is fixed terms or lifetime")
+        @logs_overridden << case_log.old_id
+        attributes.delete("referral")
+        save_case_log(attributes)
       else
         raise exception
       end
@@ -378,7 +383,7 @@ module Imports
 
       age_refused = string_or_nil(xml_doc, "P#{index}AR")
       if age_refused.present?
-        if age_refused.casecmp("AGE_REFUSED").zero?
+        if age_refused.casecmp?("AGE_REFUSED") || age_refused.casecmp?("No")
           return 1 # No
         else
           return 0 # Yes
diff --git a/spec/services/imports/case_logs_import_service_spec.rb b/spec/services/imports/case_logs_import_service_spec.rb
index db20cf117..dfe4ceb1b 100644
--- a/spec/services/imports/case_logs_import_service_spec.rb
+++ b/spec/services/imports/case_logs_import_service_spec.rb
@@ -178,6 +178,29 @@ RSpec.describe Imports::CaseLogsImportService do
         expect(case_log).not_to be_nil
         expect(case_log.referral).to be_nil
       end
+
+      context "and this is an internal transfer from a previous fixed term tenancy" do
+        before do
+          case_log_xml.at_xpath("//xmlns:Q11").content = "30 Fixed term Local Authority General Needs tenancy"
+          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 fixed terms or lifetime/)
+          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
 end