Assessing: CTDs: receiving the CTD
If the taxpayer states that they wish to use a CTD (IHTM30186) against a calculation, ask them to send you the original CTD.
Receipt in Inheritance Tax
If you receive the original CTD, either:
- take a photocopy of the CTD and file the photocopy with the letter which accompanied it, or
write the following details in red on the file cover
- the file number
- the CTD number
- the date of the CTD
- the names of the holders of the CTD
- the amount of the CTD.
Keep the original CTD in a transit envelope marked with the file reference at the front of the file until you are ready to issue a calculation.
Receipt in CTD Section - NIOP only cases
If the taxpayer or agent sends the CTD to the CTD Team with a calculation, the CTD Team will send us a form FAO 826, showing the details of the CTD.
If the taxpayer or agent sends the CTD to the CTD Team on its own, the CTD team will ask you to send them a calculation so that they can send you the form FAO 826. In this instance you should complete a calculation without showing details of the CTD and send a copy to the CTD Team, clearly stating the due date of the tax.
Once you receive either the original CTD or the form FAO 826 you should raise a revised calculation, taking the CTD into account.
If the date of the CTD is before the due date of the tax the CTD interest will be shown on the form FAO 826. In cases where we have an original CTD and it is dated before the due date of the tax you will need to send it to the CTD Team. You should also send a copy of the letter which accompanied it and the relevant calculations. The calculations should show the amount of tax now being assessed and the due date of the tax.
Where no interest is being charged on the calculation and the CTD covers any potential interest charge you should send the unamended calculation and either:
- the completed form FAO 826/1 tear-off slip or
- the original CTD and a copy of the letter which accompanied it
to the CTD Team.
Form FAO 826
This is the form CTD Team uses to show their calculations of interest on the CTD when the date of purchase of the CTD is before the due date for tax (see note below). It shows all the details you need to prepare calculations taking the CTD into account. When you get this form you can issue the calculation.
However, if you are not ready to raise a calculation, put a reminding note on the file cover and send a holding memo to CTD Section stating:
- that you are not in the position to raise a fresh calculation at the moment, and
- estimate when you expect to be able to return the FAO 826/1 and the fresh calculation.
Purchase after due date
If the date of purchase of the CTD was after the due date for tax, there is no need to refer to CTD Team to calculate interest on the CTD and you do not need form FAO 826.
Receipt in CTD Team - IOP cases
Where the customer wishes to apply the CTD against IOP (IHTM31012) tax and/or interest, refer your file to Service Technical Support. If you are unsure of how to deal with CTD cases Service Technical Support will be able to give advice.