Government Stamp duty on Atm and Credit cards

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cork

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Is ATM stamp duty imposed on a calander year and credit card duty imposed on an arpril to april year basis?
 
Yes - supporting link.

According to the above if you close the account with an ATM card before December 31 you can avoid the ATM duty as it only applies to accounts open on the Dec 31. The credit card duty can't be similarly avoided.
 
GeneralZod said:
Yes - supporting link.

According to the above if you close the account with an ATM card before December 31 you can avoid the ATM duty as it only applies to accounts open on the Dec 31.
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Not true. If you close the account mid-year then you will be charged SD at the time of closure - unless the card was not used in the year in question in which case no SD liability arises.
 
ClubMan said:
Not true. If you close the account mid-year then you will be charged SD at the time of closure - unless the card was not used in the year in question in which case no SD liability arises.
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Are you disputing this statement from the above link and/or can you cite evidence to the contrary?

The duty is charged each year for cards held on December 31. This means that you can change to a new bank account during the year but you will not be charged for cards on your previous account if it is closed before December 31.
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GeneralZod said:
Are you disputing this statement from the above link and/or can you cite evidence to the contrary?
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Sorry - my mistake. I was working off the old rules...

[broken link removed]

What if I close my account but do not switch to a new account?

 If you close your account before 1 January 2006, you will generally be liable for stamp duty as the charge relates to cards held at any time during the year and a charge to stamp duty will generally appear on your final bank statement. If you close your account after 1 January 2006 it is unlikely you will be charged stamp duty because after 1 January 2006 the duty will be collected on accounts valid on 31 December each year.
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Funny that they leave a bit of doubt with words like "generally" and "unlikely"...
 
Ah right I wasn't aware the rules had changed. Perhaps they put in the vague terms to cover banks not having updated their systems to the new rules.
 
I am thinking of switching from a visa to debit card.

I know I'll be cought for the 40 euros.

But - should I switch on 31/12 or 31/3?
 
You mean from the point of view of minimising SD charges? Well you are already liable the CC €40 SD up to next April if you have not paid this already. So I guess you cannot avoid this. In which case it might make sense to get the new debit card in the new year so that you don't also get hit for €10 SD on that for 2007?
 
Actually even if you get the debit card now you should only get caught for the €10 SD for 2007 if you actually use the card before the end of the year as far as I know.
 
I have a query re ATM stamp duty which seems to fall into this thread.

I have an EBS savings account and had an ATM card on the account up to October 2007.

At that time, I returned the card to the EBS and asked them to replace the ATM card with an account book. I signed forms in the building society at the time to confirm the card cancellation.

On 31/12, I was charged the ATM stamp duty. When I queried it today, the teller said I should be charged it because I had the card for most of 2007. But he wasn't certain about it and is to come back to me with further information. I thought I should be exempt because I did not have a card on 31/12 as the revenue information suggests.

The revenue links only cover the scenario of closing the account prior to 31/12, not of cancelling the card but leaving the account open.

Anyone know where I stand on this? If I have to pay, I have to pay, but if it's my €5, I want it back!
 
My understanding is that if you had the ATM card during 2007 and used it at least once then you are liable for the SD charge which would be charged at the time the account was closed (if applicable) or on 31st December if you cancelled the card but kept the account open. You are only exempt from the charge if you don't use the card or if you switch to another card provider as far as I know. I would expect that you are indeed liable for the charge.
 
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