Hourglass with sand running through it, sat on a table

Reminder: Certificates of Tax Deposit scheme to close in November

26 September, 2023

The Certificate of Tax Deposit (CTD) scheme allowed taxpayers to deposit funds with HMRC to be used at a later date against certain tax liabilities. The payment was treated as being made when the CTD was bought, which could offset or negate late payment interest. 

The scheme closed for new purchases in November 2017 and any remaining CTD balances after 23 November 2023 will no longer be honoured.  After that date, HMRC will attempt to repay the balance of the CTD where reasonably possible. 

Further details, as shared with us by HMRC are as follows:

Certificate of Tax Deposit (CTD) scheme closure

The Certificate of Tax Deposit (CTD) scheme closes on 23 November 2023 following a six-year notice period.

All certificate holders (or their representatives) should now send their CTDs to the CTD team with instructions for their use.

Use of remaining CTDs

CTD deposits can still be allocated to tax liabilities that fall due before the scheme closure.

If there is a balance remaining after allocation to tax liabilities, the certificate holder (or their representative) will need to provide the CTD Team with instructions for repayment of the remaining CTD deposits.

CTD deposits cannot be allocated to tax liabilities that become due after scheme closure.

CTD holders involved in ongoing litigation

Certificate holders involved in litigation that will not conclude before the scheme closure, will have the option to convert their deposits to a payment on account to the value of the disputed tax liabilities. This will protect existing cover against late payment interest.

Certificate holders in this group that wish to convert their deposits to a payment on account should contact the CTD Team, providing details of the disputed tax years and amounts.

CTD funds in excess of the disputed tax liabilities will be repaid. The certificate holder (or their representative) will need to provide the CTD Team with instructions for repayment of the remaining CTD deposits.

Mislaid CTDs

If a CTD has been mislaid, the certificate holder (or their representative) should contact the CTD Team.

Certificate of Tax Deposit Guidance

Full guidance and actions to take are available on GOV.UK: Pay your tax bill by Certificate of Tax Deposit