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@Oswald
The only option I think, is to get a drill. I'm sure that Thomson uses an M5 screw. So get a 4mm drill bit and drill the screw from the side where the allen key goes. What the aim is here is to take the cap head off of the screw. The standard socket size across flats for an M5 screw is 4mm so the drill should fit into the cap and centralise. Now the root diameter of an M5 is near enough 4mm. So once you drill thought the cap head and into the screw the screw should fail and the cap come off. You've then released the tension the same as cutting at the slot.
The seat collar is the right size for the frame? Seems strange you've closed the gap so tight and I can't see how you've tightened it too far with a torque wrench unless you set the wrench wrong .. or you ignored the click?