It seems either my memory was at fault or the information we were given was faulty, hence my previous post University Challengegate was wrong in my prediction. (BBC News: University quiz team disqualified) In fairness I wasn't the one who filled in the forms.
However I would note that I am not the only former entrant who was under this impression (see the comments on BBC News: BBC in University Challenge probe) and there is a general confusion on this matter. It doesn't help that for most universities (bar those with January/February entries) the period for University Challenge runs across two academic years, throwing up the problem of both prospective continuing students not coming back as planned but also other contestants failing their year in the summer exams, after the team has been entered. There was clearly no intention to break the rules here and it's unfortunate that the outcome has been as it is.