Where the amount of the CTD (
IHTM30186) exceeds the IHT due on the
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
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
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.