Paying tax by Certificate of Tax Deposit

Posted on 3rd October 2023 by Streets HMRC notices


Image to represent Paying tax by Certificate of Tax Deposit

The Certificate of Tax Deposit scheme allowed users to deposit money with HMRC and use it later to pay tax liabilities. The date that the certificate was purchased was known as the effective date of payment. The scheme closed for new purchases on 23 November 2017.

However, at the time, HMRC had committed to honour existing certificates until 23 November 2023. As this date approaches, it is important that holders of an existing certificate take appropriate action. 

There are a number of options, including contacting the Certificate of Tax Deposit team before the scheme closes to tell HMRC how you want to use the certificate. Users who think they will still have certificates open after 23 November 2023, can contact HMRC to arrange a refund.

After 23 November 2023 HMRC will try to repay the balance of any certificate that remain unpaid and unclaimed. If they cannot (for example, because they were unable to contact the current certificate holder after reasonable effort) they will consider the balance as forfeited.

Until 23 November 2023, users can use their deposits to pay liabilities for:

  • Income Tax (Self-Assessment)
  • Class 4 National Insurance contributions
  • Capital Gains Tax — not including Annual Tax on Enveloped Dwellings-related Capital Gains Tax
  • Corporation Tax — only Series 6 certificates bought in 1993 or earlier can be used
  • Petroleum Revenue Tax
  • Inheritance Tax

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.


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