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HMRC CTD (Certificate of Tax Deposit) Reimbursement Question

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    HMRC CTD (Certificate of Tax Deposit) Reimbursement Question

    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?

    #2
    Originally posted by shevlane View Post
    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.

    Comment


      #3
      Originally posted by stonehenge View Post
      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.

      Comment


        #4
        Originally posted by shevlane View Post
        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

        Comment


          #5
          Originally posted by NeedTheSunshine View Post
          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.

          Comment


            #6
            I think the HMRC position is correct.

            You only ever used £30k against the tax bills and not the £60k.
            Best Forum Adviser & Forum Personality of the Year 2018.

            (No, me neither).

            Comment

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