HMRC CTD (Certificate of Tax Deposit) Reimbursement Question HMRC CTD (Certificate of Tax Deposit) Reimbursement Question
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  1. #1

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    Default 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. #2

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    Quote 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.

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    Quote 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.

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    Quote 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

  5. #5

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    Quote 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.

  6. #6

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    I think the HMRC position is correct.

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