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

HMRC internal manual

Inheritance Tax Manual

Assessing: CTDs: Estate Duty

Estate Duty is not a scheduled liability, so it cannot be satisfied using a CTD. If the taxpayer wishes to pay Estate Duty with a CTD, it has to be encashed, first. The encashment date for the CTD is either;

  • the due date of the Duty - this will be the case if the CTD is dated before the due date of the Duty, or
  • the date of the CTD - this will be the case if the CTD is dated after the due date of the Duty.

In either case, send to CTD Team along with the completed calculation,

  • the completed tear-off slip FAO826/1, or
  • the original CTD and letter which accompanied it, if you have it.

If you do not have the CTD, send a memo stating:

  • that the taxpayer wishes to use the CTD against an Estate Duty liability and
  • the date of encashment.