COM90050 - Payments: processing payments: certificate of tax deposit
The Certificate of Tax Deposit (CTD) scheme enables companies to make payments from deposits held against future tax liabilities. Interest is payable to the holders of these deposits when they are surrendered against liability to tax or are encashed. Full details of the scheme are contained in a Prospectus issued by the Treasury.
Only CTDs purchased before 1 October 1993 can be used in settlement of CT Pay and File and CTSA liability. It follows, therefore, that such payments for COTAX are rare.
It is important that immediately you receive a CTD you follow the guidance in the Debt Management and Banking Manual at DMBM201100.
For a list of forms relevant to this subject, see COM90051.
For a list of functions to use in particular situations, see COM90052.