# Credit Card Levy



## Usjes (8 Feb 2011)

Hi, 

After discovering that MBNA is in fact a subsidiary of Bank Of America I have decided to cancel my MBNA credit card in light of the Wikileaks persecution. I don't want to be without a credit card though so I intend applying for a new one before destroying the MBNA one. I'm wondering about the annual government levy though. When does it get collected ? How do I avoid paying it twice when I only really want one credit card (although there may technically be a day or two of overlap when I have two simultaneously). Anyone know, can I pay the levy just once or am I liable for it twice if I hold two different credit cards within a single year? 

Thanks, 

Usjes.


----------



## DMcL1971 (9 Feb 2011)

There is an explanation of how the card levy system works on the revenue website. (I can't post links yet but you'll find it by searching for 'Stamp Duty on Financial Cards').

It says that when you close the credit card account with MBNA they will charge you the stamp duty on your last credit card statement and issue you with a 'Letter of Closure', you then present this letter to your new credit card provider who will then not charge you the stamp duty when it normally comes due in April.


----------



## NovaFlare77 (9 Feb 2011)

To back up what CMcL says, this is from the Citizens Information website:

"The duty is payable on April 1 for the preceding year. The tax year for the stamp duty begins on April 2." 

"If you are changing to a different credit card account you don’t have to pay the duty more than once. When you are closing the account your card issuer will give you a letter of closure stating that you have paid your stamp duty for the year. If you give this letter to your new card issuer, you will not be charged stamp duty by them for that year. You can change account as often as you like during the year without paying extra duty, as long as you transfer a letter of closure between the card issuers each time."


----------



## Sandals (9 Feb 2011)

DMcL1971 said:


> It says that when you close the credit card account with MBNA they will charge you the stamp duty on your last credit card statement and issue you with a 'Letter of Closure', you then present this letter to your new credit card provider who will then not charge you the stamp duty when it normally comes due in April.



true, this is exactly what happened when I moved to MBNA from BOI. I did pay the €30 again to MBNA and then sent off my letter from BOI and then MBNA refunded the money the next month. 

But I know the date of closing my old card had to be before getting the new one in order to only pay one charge of €30. If you two credit cards, two charges.


----------



## DMcL1971 (9 Feb 2011)

Just a further point on the overlap of the two credit card accounts. You don't have to cancel the original credit card account before you open the new one. This means you can apply for the new credit card and start using it, thereby having two credit card accounts for a period of time, before you close the original one. You just pass the 'Letter of Closure' on to the new provider when you cancel the original card. This should only cause you a problem if you try to do this around the start of April when both card accounts might be open at the same time on the date the stamp duty is due.

PTSB made a complete mess of a credit card application I made to them a few years ago and I had to resubmit my paperwork several times as they kept on losing it. I ended up with my original card still live and I received four credit cards from PTSB. I then gave up dealing with PTSB and got a credit card through NIB. I then cancelled the original credit card and all four credit cards I had with PTSB. Got all my letters of closure and submitted them to NIB. Come April I was only charged one stamp duty for the NIB card that was live at that time despite having had five credit cards running concurrently at one point during the year.


----------



## Usjes (28 Aug 2011)

*Letter of Closure*

Hi, 

Does anyone know if this, "letter of closure", needs to explicitly state  that the Levy has been paid? The letter MBNA ultimately sent me seems a  bit generic. It does confirm that the account is closed but doesn't make  any mention of the Levy. Will this suffice to prevent my new Card  provider from deducting the Levy again next April ? 
Specifically the MBNA letter says:

_We have received your request to close your MBNA Credit Card account.  As you have requested, this account is now closed. If you have not  already done so, please ensure that your credit card and cheque book are  destroyed._
_Etc.

_Usjes


----------

