Closure of Certificates of Tax Deposit scheme

Posted on 11th January 2023 by Streets What's trending?


Image to represent Closure of Certificates of Tax Deposit scheme

The Certificates of Tax Deposit scheme had been available for many years. Under the scheme, a taxpayer could purchase a certificate from HMRC and subsequently use the certificate either to pay a tax liability or obtain a refund.


They were often used where a liability was in dispute with HMRC, and a certificate was purchased to both put funds in place to pay the liability should HMRC win the dispute and also to mitigate the interest charge on the eventual payment of the liability.

In November 2017 it was announced that the scheme was being closed. No new purchases were able to be made from 23 November 2017 but existing deposits would be honoured until 23 November 2023.

HMRC have recently been writing to deposit holders to remind them of this expiration date.

There are options available as to how to proceed, such as request a refund of the deposit or offset against a current liability, but where the original potential tax liability is in dispute funds should continue to be put aside in case the liability becomes payable.

If you believe you hold a certificate of tax deposit, then please contact us at info@streetsweb.co.uk as the appropriate course of action for you will depend on your specific circumstances.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


Boost Your Restaurant's Cash Flow with These Top Tips!

Maintaining a healthy cash flow is crucial for the success of any restaurant. Here are five key strategies to get you started: Optimise Menu Prices Ensure your dishes are priced for both competitiveness and profitabilityStreamline InventoryReduce waste and free up cash by using smart inventory management techniquesNegotiate with SuppliersBetter terms ...


Property Finance - unlocking opportunities with confidence and support

Exploring, navigating and understanding the complex landscape of property finance options can not only be time consuming, but hard to understand with the diverse range of financing options that are available in the market. It is essential from the outset for business owners to carefully evaluate their financing and ...


Child Benefit Updates

You may have heard about the recent changes to the High Income Child Benefit Charge which were announced in the Spring Budget. This is something that will affect several of our clients, and the changes can influence whether claims are made for child benefit or whether those that ...


You might also be interested in...