IHTM31775 | Assessing: CTDs: Estate Duty
From HM Revenue & Customs · Inheritance Tax Manual
Estate Duty is not a scheduled liability, so it cannot be satisfied using a CTD. If the taxpayer wishes to pay Estate Duty with a CTD, it has to be encashed, first. The encashment date for the CTD is either;
the due date of the Duty - this will be the case if the CTD is dated before the due date of the Duty, or
the date of the CTD - this will be the case if the CTD is dated after the due date of the Duty.
In either case, send to CTD Team along with the completed calculation,
the completed tear-off slip FAO826/1, or
the original CTD and letter which accompanied it, if you have it.
If you do not have the CTD, send a memo stating:
that the taxpayer wishes to use the CTD against an Estate Duty liability and
the date of encashment.