HMRC CTD (Certificate of Tax Deposit) Reimbursement Question

[webberg]

I think the HMRC position is correct.

You only ever used £30k against the tax bills and not the £60k.

[stonehenge]

I presume they are treating the CTD as only ever having held £30k as you withdrew £30k and so lost the benefit of ever having that in the CTD

Yes, that's what I meant.

[NeedTheSunshine]

That would make sense, but I still hold it.

I presume they are treating the CTD as only ever having held £30k as you withdrew £30k and so lost the benefit of ever having that in the CTD

[shevlane]

Unfortunately, if you withdraw a CTD, I believe you lose the benefit of ever having it.

That would make sense, but I still hold it.

[stonehenge]

Does anyone know which of the two calculations above is correct?

Unfortunately, if you withdraw a CTD, I believe you lose the benefit of ever having it.

[shevlane]

Hi all,

Having been involved in the "contractor loans" HMRC enquiries for many years, I followed the "best practice" advice and took out a Certificate of Tax Deposit (CTD) with HMRC many years ago.

Apparently, while you hold a CTD with HMRC, it is supposed to stop interest accruing while an amount of tax is in dispute. I did the following:

• Nov-15: Purchased a CTD for £60,000
• Apr-17: Made a partial withdrawal of £30,000 (new CTD value: £30,000).
• (present): Still hold £30,000 CTD

As part of registering my interest to settle with HMRC (as part of CLSO2), I nominated that I'd like to offset the interest due with the CTD that I've held.

However, in returning the calculations, they only applied £30,000 across the whole period. i.e.

• Nov-15 - (present): £30,000

Instead of:

• Nov-15 - Apr-17: £60,000
• Apr-17 - (present): £30,000

I wrote back and (after a 3 month delay) they just re-sent the same thing back to me. Does anyone know which of the two calculations above is correct?