COM90050 - Payments: processing payments: certificate of tax deposit

The Certificate of Tax Deposit (CTD) scheme enabled companies to make payments from deposits held against future tax liabilities. Interest is payable to the holders of these deposits when they are surrendered against liability to tax or are encashed. Full details of the scheme are contained in a prospectus issued by the Treasury.

Only CTDs purchased before 1 October 1993 can be used in settlement of CT liability. Such payments for COTAX are therefore rare.

From 23 November the CTD scheme is closed. It is no longer possible to purchase new certificates, but existing certificates will continue to be honoured until 23 November 2023.

It is important that you follow the guidance in the Debt Management and Banking Manual at DMBM201100 immediately you receive a CTD.

See:

  • COM90051 for a list of forms relevant to this subject
  • COM90052 for a list of functions to use in particular situations.