IHTM31774 - CTDs: assessing NIOP cases


Where the amount of the CTD ( IHTM30186) exceeds the IHT due on the NIOP ( IHTM31012), no interest will be charged after the EDP of the CTD.

Where the tax due exceeds the CTD IHT interest will be charged on the amount of tax not covered by the CTD until the date of assessment.

When you have completed the assessments you should


  • write in the notes box of each assessment "The Certificate of Tax Deposit has been taken into account and the interest adjusted accordingly"
  • write in red in the deposit box the CTD file number. The file number is shown on the form FAO 826 in the format "CTD." or in the top left hand corner of the CTD. On the original CTD three numbers are shown and they are
  • top left - file number
  • top right - certificate number
  • bottom left - printers' number.)

In the same way that an IHT file reference may have many Entries ( IHTM31011) a CTD file number may relate to other certificates. However, as in the case of the IHT reference it is the file number which should be quoted in every communication with CTD Team. In the absence of the file number you should quote the name of the purchasers. This is likely to be the deceased or the executors/personal representatives of the deceased in a death case or the transferor/settlor, beneficiary or trustee in a lifetime case depending on who is paying the tax.

Show the amount of CTD being used on the assessment (which will never be more than the tax to be paid on the assessment) as an IHT deposit.

If a form FAO 826 has been issued by CTD Team, complete and tear off the bottom slip FAO 826/1 and send it with the completed assessment to CTD Team DMB Banking, Cumbernauld.

If you have the original CTD, send the completed assessment, the original CTD and a copy of the taxpayer’s letter which accompanied the CTD to CTD Team DMB Banking, Cumbernauld.

If the taxpayer has stated that they wish the IHT interest to be satisfied out of the CTD


  • by letter - send a copy of the letter to CTD Team with the assessment and accompaniments
  • by telephone - instruct the taxpayer to send a letter to that effect to CTD Team quoting the CTD file number. Send a memo to CTD Team with the assessment and accompaniments detailing the telephone conversation and your instructions to the taxpayer.

They will remind monthly after the issue of the assessment. If after two reminders there has been no response CTD Team will send a memo to the us reference detailing the balance outstanding and the date the assessment and subsequent reminders were issued. It is then up to you to carry out reminding action.

As interest on IHT is not a scheduled liability, CTD Team have to encash as much as is necessary of the CTD to satisfy the interest charge. When a CTD is encashed the EDP is lost and the lower rate of CTD interest is given. When any part of a CTD has been encashed it simply becomes a cash sum as if the parties had forwarded a cheque to Shipley for the amount of interest due.

The taxpayer may ask to see the assessment prior to payment.


  • If you already have the original CTD or a form FAO 826, raise the assessment and send a copy to the taxpayer. Once they are satisfied, you can send the assessment to CTD Section.
  • If you do not have possession of the original CTD, send the original assessment to the taxpayer with a covering letter. Emphasise that only the specified CTD may be used in payment of that part of the assessment shown as being paid by CTD and if any other form of payment is used the interest will need to be adjusted. Please also say that once they are satisfied with the assessment it should be sent with the original CTD to CTD Team and payment for any outstanding balance should be included.