Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Certificates of tax deposit: calculating interest

Certificates of Tax Deposit (CTD) carry simple interest calculated on a daily basis from the date of deposit until the earliest of either:

  • the date of payment of the tax which they are being used to pay
  • the date on which they are surrendered for cash, or
  • six years after the date the deposit was made.

Full details of how interest is paid on CTDs and current interest rates (HMRC website) can be found at http://www.hmrc.gov.uk/payinghmrc/cert-tax-deposit.htm.

Where the Certificate is purchased after the date that a tax liability became due, interest is not added to the deposit, but no further interest is charged on the equivalent amount of the tax liability.