# do you pay the Government Duty on Credit card if you dont use the card?



## NatNif (25 Aug 2008)

Hi there,

I am thinking of getting a credit card for emergency purpose and perhaps when travelling but don't plan on using it too often. If i dont use the card for a year does the duty on the card have to be paid?? i know on bank cards that its only chrge if the card is used does the same apply to credit cards?


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## ClubMan (25 Aug 2008)

Stamp duty is charged on ATM/debit *cards *if they are used but it's charged on _CC _*accounts *so I assume that it is charged even if you don't use the card.


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## WaterSprite (25 Aug 2008)

I got a second credit card for travelling earlier in the year and have never used it and did indeed get charged/pay the annual fee

Sprite


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## NatNif (26 Aug 2008)

Ok thanks for the replies.


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## The MOB (26 Aug 2008)

I don't believe you are charged if you don't use the card. Check the Revenue website as they have FAQ's on this. You should check proper resources for these issues prior to AAM as there are alot of people not qualified in tax giving tax advice on this.



NatNif said:


> Ok thanks for the replies.


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## WaterSprite (26 Aug 2008)

I'm certainly not qualified in a tax sense to answer the question - but am completely qualified to answer it in a practical sense. I was in *exactly* the same position as OP, as in (a) I got an additional credit card to go travelling, (b) never put anything on it and (c) got charged, and paid, the annual fee. 

Sprite


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## ngwrbc (27 Aug 2008)

Would you try MBNA, they sent me a credit card (that I didn't apply for, just clicked a link on some site and halfway thru application decided not to bother - gold card with 5k limit arrived 3 days later!)...however I rang them and said I didnt want the card, they told me I could keep it and as it was already set up if I was ever stuck to ring them and they'd activate it over the phone, plus that I wouldn't be charged govt levy unless I actually activated the card.  

So I'd imagine if you set up an account with them and then if you do need the card ... activate the account (levy charged then obviously)


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## ClubMan (27 Aug 2008)

The MOB said:


> I don't believe you are charged if you don't use the card. Check the Revenue website as they have FAQ's on this.


Can you link to or post the extract that explicitly says that _SD _is not charged on a *credit *card that is not used so? As I said above _SD _is charged on the _CC_ *account *and not the *card*.



ngwrbc said:


> So I'd imagine if you set up an account with them and then if you do need the card ... activate the account (levy charged then obviously)


According to _Revenue SD _is charged on the *account *and not the *card*. This is why you can have more than one _CC _on a single account but pay only one _SD _charge. I think you mean activating the *account *here?


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## rmelly (27 Aug 2008)

The MOB said:


> I don't believe you are charged if you don't use the card. Check the Revenue website as they have FAQ's on this. You should check proper resources for these issues prior to AAM as there are alot of people not qualified in tax giving tax advice on this.


 
Yes, I'm wondering if we should not individually be consulting a Tax Consultant on this subject - afterall the advice I get may not be appropriate for someone else. I wonder how cost effective that would be though...


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## The MOB (27 Aug 2008)

"Not using the card" does not literally mean not using the physical card. It means not having a transaction charged to the account.

I know the duty is charged on the account. 

On the link clubman asks for see [broken link removed] and look got the following on the FAQ's

*What if I received a credit card or charge card but never used it?*

If the credit card account is closed never having been used, no stamp duty is payable provided that you close the account in the same period as it was opened.

I am not a tax consultant but a friend of mine who is directed me toward the above. If anyone wants their details...




The MOB said:


> I don't believe you are charged if you don't use the card. Check the Revenue website as they have FAQ's on this. You should check proper resources for these issues prior to AAM as there are alot of people not qualified in tax giving tax advice on this.


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## The MOB (27 Aug 2008)

Cost effective is subjective. It's not about cost but how good the service is



rmelly said:


> Yes, I'm wondering if we should not individually be consulting a Tax Consultant on this subject - afterall the advice I get may not be appropriate for someone else. I wonder how cost effective that would be though...


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## ClubMan (27 Aug 2008)

Thanks. So people who never used a _CC _or had transactions on the account but still had _SD _charged probably faced this charge simply because they account was open across more than one _CC SD _tax year which runs April 2nd to the following April 1st?


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## The MOB (27 Aug 2008)

correct



ClubMan said:


> Thanks. So people who never used a _CC _or had transactions on the account but still had _SD _charged probably faced this charge simply because they account was open across more than one _CC SD _tax year which runs April 2nd to the following April 1st?


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## ClubMan (27 Aug 2008)

OK - thanks.


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