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

N

NatNif

Registered User
Messages
19
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?
 
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.
 
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
 
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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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
 
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)
 
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.
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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)
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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?
 

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...
 
"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...


 
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...
Click to expand...
 
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?
 
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?
Click to expand...
 
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