Autumn Budget 2017: Certificate of Tax Deposit scheme closed

The Certificate of Tax Deposit (CTD) scheme enabled individuals, companies, personal representatives and trustees to deposit money with HMRC, ready to use it later to pay liabilities for income tax, class 4 national insurance contributions, capital gains tax, corporation tax and inheritance tax.

Such deposits were frequently made during protracted tax investigations because they helped stop late payment interest accruing on any tax owed.

Daily interest was paid on tax deposits over £100,000, but the interest was paid gross, meaning it had to be declared when received.

As of 23 November 2017 the scheme has been closed. It is no longer possible to purchase new certificates, but existing certificates will continue to be honoured until 23 November 2023. Any certificates held after this date should be submitted to HMRC for a refund.

Between 23 November 2017 and 23 November 2023, those who have made such deposits in anticipation of a liability should send their CTD to HMRC with instructions explaining how the deposit is to be used. Failing that, a refund should be claimed. If neither action is taken, HMRC will attempt to repay the balance of any certificate remaining unpaid but if the certificate holder cannot be identified, the balance will be regarded as forfeit.