Certificates of tax deposit - introduction
Certificates of Tax Deposit (CTD) are deposits made to meet present or future tax liabilities. The deposits may be made by individuals, personal representatives, trustees, companies, partnerships and other bodies liable for tax. They can be used to pay Inheritance Tax and certain other taxes, including income tax (except PAYE). Alternatively, the deposit can be cashed and the proceeds repaid.
The deposits carry interest for a maximum of six years. The rates of interest change from time to time but are higher if the certificates are used to pay tax than if they are surrendered for cash.
The CTD scheme was closed with effect from 23 November 2017. New certificates can no longer be purchased but existing certificates can still be used until 23 November 2023.
Details of the scheme including how interest is calculated can be found on GOV.UK.