# charged stamp duty for changing credit card



## humph (2 Sep 2003)

the wife has a standard AIB credit card, I have a gold AIB credit card with a better interest rate.  She wants to close her one and go under mine as an authorized user but it will cost 40 euro stamp duty for her to close hers.  
Is this really right? I cant see the logic in it.  Surely this is saying you cant get something cheaper elsewhere without paying for it? Is it restricting free trade.


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## rainyday (2 Sep 2003)

Hi Humph - It's not really the case that she is being charged €40 for *closing* the account. She is being charge €40 for having the account in existence, and the credit card company are telling you that you must pay the duty before you close the account.


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## Elcato (2 Sep 2003)

Hi humph - It would be more prudent to continue with the existing card until next March and the get a new one after April the 1st. That way you are getting you're €40 worth. When you open the new account you are liable for another €40 at the end of the year i.e. March 2005.


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## daltonr (2 Sep 2003)

Next time you hear a Minister talking about competition between financial institutions, and consumer choice, have a close look and you should see the subtle bulge of a tongue in their cheek.

-Rd


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## humph (2 Sep 2003)

*cc*

thanks for the info guys, I was aware of what the charges were for but Rainys explanation makes it sit easier with me..  The thing is Im paying the 40e on my card as well so in my mind we're losing out with the double charge coming into the house, 
There should be only one charge on a card no matter how many authorised users (I think the bank allows 4) so that should save us 40e next year.  If she leaves it til after next april  then there'll be another charge on her card.   

tnx.


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## Obi Wan Kenobi (12 Sep 2003)

*Credit Card Tax Year?*

Anyone have any backup to the idea that the card can be cancelled up to March without incurring the Stamp charge?  Surely once the account is open on January 1 (first day of the tax year) the charge is applicable?


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## rainyday (12 Sep 2003)

*Re: Credit Card Tax Year?*

Hi Obi - I'm pretty sure the tax year for the credit card stamp duty is from 1st April. This was definitely the case a year or two ago. So if you cancel in March 2004, you will still have to pay for for the 2003/2004 year, but you won't have to pay for the 2004/2005 year.


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## zag (15 Sep 2003)

*Re: Credit Card Tax Year?*

Obi - if you are enquiring about the *old* loophole that used to exist, I'm afraid it has been closed.

As of this year, if you have a credit card at any stage during a year, you owe the duty.

If you want to simply close your account and be done with credit cards altogether, then you will still be liable for the duty.

If you want to change provider, you will still be liable for the duty and if you change during the year (instead of closing before year end and opening after the year end) you will be liable for two duties.

z


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## Obi Wan Kenobi (15 Sep 2003)

*Re: Credit Card Tax Year?*

Thanks Zag.

That was my take on it too - once it's open January 1 you're liable for that year.


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## rainyday (15 Sep 2003)

*Re: Credit Card Tax Year?*



> That was my take on it too - once it's open January 1 you're liable for that year.



Actually, I think the relevant cut-off date is 1st April.


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