Switching credit card and stamp duty. Is there leeway?

T

The Oggster

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If I open a new credit card account and then pay off the old one and close it, is there a time period where both can be active for a period without paying the stamp duty twice?

If I close the old one 2 weeks later, pay the stamp duty and receive my letter stating this. Then forward this to my new credit card company, will they not charge again?

What if it's 6 months later when I close it. I'll still have a closure letter but will they look at the dates and charge again?

I'm not planning on doing that last scenario btw, just wondering out loud.

Or do I have to close the old one first?
 
I got triple charged this year. I went through both providers for a short cut…..

You don’t get a closure letter until the account is closed.
 
Nordkapp said:
I got triple charged this year. I went through both providers for a short cut…..

You don’t get a closure letter until the account is closed.
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What did they say? Was it around the time the duty is applied? Maybe both were open at the time?
 
I just recently applied for an AIB credit card. This will take over from my Ulster Bank credit card very shortly, when I close it. I notice that I was charged €30 last month government duty by Ulster Bank. ( was this for last year or is the charge for next year?)

I assume that I will be charged another €30 by the Ulster Bank when I close it shortly? Will I get a letter to show that this charge has been applied and do I send this to the AIB so that they don't charge me next year when charges are applied?
 
It's paid in arrears. That was the regular payment due on the 1st April for the previous year. If you didn't have your AIB one by then, they won't charge until next April.

You're right that Ulsterbank will charge stamp duty again when you close the account. You should receive a letter stating that the account has been closed and the €30 stamp duty for April 1st 2022 - March 31st 2023 has been paid. Then you send that letter to AIB and it will show them that the €30 has been paid.

That's my question really. Is there any leeway with both being open together for a short time?

I think I'll ask revenue as I don't see anything on their site.

The other poster was charged more than once.
 
Every time I've changed credit cards, and gotten assurances of the fee being dealt with, I've been double charged. This includes the last time when I changed cards with Ulsterbank to Ulsterbank. Each time the fee was dealt with by the credit card crediting the amount equal to the fee rather than trying to sort out the tax refund. The agent said it was just easier and cheaper for them that to try deal with it properly.
 
I paid the charge when requesting the Credit card account be closed, I provided that proof of payment to AIB. AIB chose to ignore that proof and charged it again, it took 3 days of persistence to get them to reverse it. Meanwhile, the former bank, although the account was technically closed, decided to charge it again, that took a mere 20 min call to get sorted.

So in my view, No you cannot have both accounts open as both will now be subject to the 2023 payments as 1st April has now passed.
 
Might just close the old one and then open a new one. Can use debit card in the meantime. At least that way there can be no argument from my new supplier that both accounts were open or anything like that.
 
This is the Revenue guidance:

Credit cards and charge cards​

The rate for credit cards is €30 per year per credit card account. The charge for credit cards is for the account and not the number of cards issued to that account.

The rate for charge cards is €30 per year for each charge card issued to an account.

Your financial institution will generally collect Stamp Duty on 1 April, in arrears, unless you close the account during the year. The tax year for credit cards runs from 2 April to the following 1 April.

If you switch accounts you should pay the Stamp Duty to the old bank or card issuer on closing the account. Your old bank or card issuer will charge the Stamp Duty in your final statement. They will then issue a Letter of Closure to you. This letter confirms that you have paid the Stamp Duty for the period in question. You should present this letter to your new bank or card issuer. You will not be charged Stamp Duty for that period.

If you change credit or charge cards numerous times in the same accounting period, you are only charged on the original account. You need to obtain a Letter of Closure each time you close an account. The next bank or card issuer will issue a Letter of Closure once it has proof that the initial duty was paid.

If you close your account in the same period as you opened it wihout using the card, no charge to Stamp Duty arises.

If you close your account during the year and do not open a new account, a Stamp Duty charge arises for the preceding year.
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I closed my Ulster Bank credit card account last year when we were told that we had to do this because Ulster Bank was withdrawing from the Irish market. I had paid the €30 government fee on my Ulster Bank credit card.
I received a letter from the Ulster Bank stating this and was assured that if I forwarded this letter to my new card holder, I would not be charged again. This was forwarded to the AIB.
Today I get my AIB credit card statement and it is showing the €30 government charge.

Anybody else in a similar position?
 
SlugBreath said:
I closed my Ulster Bank credit card account last year when we were told that we had to do this because Ulster Bank was withdrawing from the Irish market. I had paid the €30 government fee on my Ulster Bank credit card.
I received a letter from the Ulster Bank stating this and was assured that if I forwarded this letter to my new card holder, I would not be charged again. This was forwarded to the AIB.
Today I get my AIB credit card statement and it is showing the €30 government charge.

Anybody else in a similar position?
Click to expand...
Card stamp duty is paid in arrears so you're liable for it for the period of time that you held the card during the previous card stamp duty year.

Stamp duty on financial cards

Stamp duty is charged on credit cards and charge cards annually. A transaction fee is charged on ATM withdrawals.
www.citizensinformation.ie www.citizensinformation.ie
 
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